SIMPLE IRAs
- Maximum employee deferral is the lesser of 100% of income or $13,500
- $3,000 catch-up provision for participants age 50 or older
- Mandatory company contribution of 3% match or 2% to all eligible employees (non elective)
- Maximum employer match is the lesser of 3% of income or $13,500
- Match may be dropped to 1% or 2% twice in a five-year period
- Immediate distribution provisions
- New plans for current year must be established by Oct 1.
- Plan runs on a calendar year regardless of company's fiscal year
- Total maximum contribution: $27,000
- Total maximum contribution with catch-up: $33,000
This information is provided as of November 13, 2020.