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Which businesses can set up a SIMPLE IRA?

Last updated on Nov 14, 2024

SIMPLE IRAs are available to a broad range of businesses. Here’s who can set one up:

Small Businesses and Self-Employed Individuals: Any business with 100 or fewer employees—including sole proprietors, freelancers, and independent contractors—can establish a SIMPLE IRA to help provide retirement savings for themselves and their employees.

Tax-Exempt Organizations: Nonprofits, charities, and other tax-exempt organizations can also set up a SIMPLE IRA for their employees, offering a straightforward and low-cost retirement option for their workforce.

Governmental Entities: Local, state, and certain federal government entities can also establish SIMPLE IRAs, making it easy for employees in public service to save for retirement.