Calculate contributions and project retirement growth for small business employees with a Savings Incentive Match Plan for Employees (SIMPLE) IRA.
Contribution Strategy
Savings Forecast
Projected Balance$547,617After 25 years
Total Annual Contribution$7,800Employee + Employer
Account Growth Over Time
About this calculator
Overview
Calculate contributions and project retirement growth for small business employees with a Savings Incentive Match Plan for Employees (SIMPLE) IRA.
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Pro Tips
What is a SIMPLE IRA?: A SIMPLE IRA is a retirement plan for small businesses with 100 or fewer employees. It's easier and cheaper to maintain than a 401(k) but has lower contribution limits.
How much can I contribute?: For 2024, the employee contribution limit is $16,000. If you are 50 or older, you can contribute an additional $3,500 'catch-up' amount.
How does the employer match work?: Employers are generally required to either match employee contributions dollar-for-dollar up to 3% of compensation or provide a flat 2% non-elective contribution for all eligible employees.
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Fun Facts
"The 'SIMPLE' in SIMPLE IRA stands for Savings Incentive Match Plan for Employees."
"If you withdraw money from a SIMPLE IRA within the first two years of joining the plan, the early withdrawal penalty is 25% (instead of the usual 10%)."
"Unlike a 401(k), employers cannot choose to skip the matching contribution—it is a requirement of the plan."
