By Matthew Makowski A SIMPLE IRA plan is one of many different types of retirement plans out there. While all plans have nuanced benefits and drawbacks, a SIMPLE IRA plan is unique in its own right.
SIMPLE is an acronym that stands for “savings incentive match for employees.” And IRA stands for “individual retirement account. As you might have figured out, this plan is specifically offered by employers… with tax-advantaged incentives for employees to contribute as well.
Employers have two contribution choices. On one hand they can make a nonelective contribution of 2% of the employee’s salary. The other choice is to make a