Small-employer retirement plan that combines employee salary deferrals with required employer contributions through IRA accounts.
A SIMPLE IRA is a retirement plan for smaller employers that lets employees defer part of salary into IRA-based accounts while employers make matching or required contributions.
It is designed to be easier to administer than many larger workplace plans while still giving employees a formal retirement-saving channel through payroll.
SIMPLE IRAs matter because they sit between a basic IRA and a full-scale employer plan.
employees can contribute through salary reduction
employers must contribute under the plan rules
administrative burden is usually lower than with more complex plans
That structure makes SIMPLE IRAs a practical option when a small employer wants a real retirement benefit but needs manageable setup and compliance demands.
IRA: The account wrapper used by the SIMPLE structure.
SEP IRA: Another small-business retirement option with different funding rules.
401(k) Plan: Broader employer-plan comparison point.
Traditional IRA: Individual tax-deferred IRA structure.