A Savings Incentive Match Plan for Employees (SIMPLE) is, as the acronym suggests, a relatively simple plan to set up and administer. SIMPLE IRAs allow participant deferrals, flexible employer contributions and minimal paperwork and tax filing. Any employer with fewer than 100 employees can establish this type of plan.
Employers have the option of contributing 2% to all eligible employees or a dollar-for-dollar match of 3% for those employees making deferrals. The 3% match is more common as it provides an incentive for employees to participate in planning for their successful retirement. However, there are a few exceptions to these guidelines.
Selecting the best option for your company requires a great deal of thought and knowledge. The professionals at Northern Financial Management have the experience to help you design and implement the right plan. We would welcome the opportunity to discuss your current strategy and other possible options for your company!