Big corporations use retirement plans like the 401k to attract and keep good employees. Whether you are self-employed or if you have up to 100 employees, the SIMPLE IRA gives you big-time retirement benefits without the big-time start-up and operating costs.  

Voya can help you set up a SIMPLE IRA plan for your small businesses.  We can serve as the IRA custodian holding assets for each employee, too. 

Key Features

  • Easy for you.  Even the IRS says the SIMPLE IRA is “easy and inexpensive to set up and operate”. To adopt a SIMPLE IRA plan, all you need to do is sign the IRS Model Form 5304-SIMPLE or Form 5305-SIMPLE.
  • Something for everybody. You can set up a SIMPLE IRA plan for all kinds of businesses and organizations with up to 100 employees including self-employed, tax-exempt employers, and governmental entities. 
  • Employers choose from two types of contribution plans. The employer can either match the employee’s contribution up to 3% of the employee’s annual salary, or make a fixed contribution based on 2% of the employee’s salary. The latter is often referred to as a “non-elective” plan because the employer makes the 2% contribution even if the employee makes no contribution.
  • A nice perk for all employees. Employees do not have to contribute and they are 100% vested from the beginning. The SIMPLE IRA plan must cover all employees and you generally cannot sponsor another retirement plan. 
  • Catch-up allowed. Employees over the age of 50 can make their own catch-up contributions of up to $2,500 a year. 
  • Voya can help. We’ve got all the forms and information you need to start your SIMPLE IRA. 

Products

Securities offered through Voya Financial Advisors, Inc. member SIPC.

Neither Voya nor its affiliated companies provide tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation.  

This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice.  All investments are subject to risk.  We recommend that you consult an independent legal or financial advisor for specific advice about your individual situation.

The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.