SIMPLE IRA
In accounting, SIMPLE IRA means a retirement plan for employers with 100 or fewer employees and no other plan: employees defer up to $17,000 for 2026 into their own IRAs, and the employer matches up to 3% of pay or gives 2% to everyone eligible. Set up effective by October 1 of a year.
Authority: IRS — SIMPLE IRA plan (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- SEP IRA
- safe harbor 401(k)
Also in Benefits
Defined in Lexicon. This page is generated from that document, so the two can't disagree.