A Savings Incentive Match Plan for Employees (SIMPLE) IRA Plan
is a retirement savings plan adopted by a business that allows both employers and employees to make retirement savings contributions. Each eligible employee sets up a SIMPLE IRA to receive the plan contributions.
A SIMPLE IRA plan is easy to establish, simple to administer, and inexpensive compared to other types of retirement plans, such as 401(k) plans. There are no compliance tests and employers are not required to file annual reports with the IRS. Employees share the responsibility of funding the plan with their employers.
Any employer with 100 or fewer employees, including a self-employed individual, can establish a SIMPLE IRA plan.