SIMPLE IRA

If you’re an employer with fewer than 100 employees, a Savings Incentive Match Plan for Employers, or SIMPLE IRA, could be a cost-effective retirement plan option for your company.

Just like employer-sponsored 401(k) plans, a SIMPLE IRA program encourages employees to fund their own retirement accounts through pretax salary contributions.

While limited employer contributions are also required, the SIMPLE IRA plan features more flexible rules and involves less paperwork than a 401(k) plan. So they’re often ideal for small businesses looking to hold down administrative costs.

A SunTrust advisor can provide further details on the benefits of SIMPLE IRAs, and help you determine if a SIMPLE plan makes sense for your company.

As part of SunTrust’s range of investment options, we offer SIMPLE IRA certificates of deposit and SIMPLE IRA money market accounts.

Talk to a SunTrust advisor today: 866.732.1687

Why choose a SIMPLE IRA plan from SunTrust?

  • Easy setup and operation
  • Low administrative costs
  • Convenient payroll deductions
  • Employer choice of matching employee contributions or contributing a fixed percentage of employee pay

SIMPLE IRA eligibility

To be eligible to establish a SIMPLE IRA small business retirement savings plan, you must:

  • Have no more than 100 employees who earned above $5,000 during the
    preceding calendar year.
  • Sponsor no other retirement plan, such as a 401(k) plan
  • Complete and maintain the necessary plan documentation

SIMPLE IRA contribution rules

  • Limits are $12,000 for employees under age 50 and $14,500 for these individuals age 50 or older, or 100 percent of income—whichever is less.
  • Contributions can be made up to tax-filing deadline.
  • Employers have two options:
    • Dollar-for-dollar match of employee contributions up to 3 percent of compensation (or as low as 1 percent for two of any five years).
    • Fixed non-elective contribution of 2 percent of compensation for employees earning above $5,000
Disclaimers

Neither SunTrust, its officers, nor its employees gives tax or legal advice. Please consult your tax or legal advisor concerning your specific situation.

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