Well-Suited For Employers Who:

• Have fewer than 100 employees who earn at least $5,000 each.
• Want to cut costs.

Employees may contribute 100% of their pay up to $7,000 and are 100% vested in all contributions. You make required contributions in one of two ways.

• 3% match-The employer matches employees' contributions dollar-for-dollar, up to 3% of each eligible employee's gross salary. (Matching contributions can't exceed $6,500 annually.) In two years of any five-year period, the employer can elect to reduce the match to as low as 1% of salary.
  
  
• 2% contribution-The employer contributes 2% of all eligible employees' gross salaries whether or not they elect to participate in the plan.

A SIMPLE-IRA may be a good plan design for you if the following statements match your retirement plan objectives and capabilities:

• I want employees to have the ability to defer income on a pre-tax basis.
  
  
• The employees should bear the expenses for the plan.
  
  
• An ongoing administrative contact is not necessary. Support through an 800 phone number is fine.
  
  
• I don't want to bother with annual compliance testing or IRS reporting.
  
  
• I'm comfortable with making a required annual contribution.