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What is the eligibility criteria to offer SIMPLE IRA?

To offer a SIMPLE IRA, your business must meet the following criteria:

• You cannot maintain any other employer-sponsored retirement plan during the same calendar year.
• Your business must have 100 or fewer employees who earned at least $5,000 in compensation in any two prior calendar years (they don’t have to be consecutive).
• Eligible employees must also be reasonably expected to earn at least $5,000 during the current year.
• These guidelines are set by the IRS to ensure SIMPLE IRAs remain a retirement solution for small businesses.