A Savings Incentive Match Plan for Employees available to employers with 100 or fewer employees. Employees can defer up to $16,000 in 2024, and employers must contribute a mandatory match or non-elective contribution.
Why SIMPLE IRA matters for employers
SIMPLE IRAs are one of the simplest retirement plan options for small employers because they require no annual Form 5500 filing, no nondiscrimination testing, and minimal administrative work. Employers must either match employee contributions dollar-for-dollar up to 3% of compensation or contribute a flat 2% of compensation for all eligible employees regardless of whether they contribute.
Employees may be eligible immediately or after meeting a service requirement of up to two years. The plan must be maintained for a full calendar year, and employees generally cannot transfer funds out of a SIMPLE IRA within the first two years without a 25% early withdrawal penalty in addition to income taxes.
How BEG handles SIMPLE IRA for clients
BEG Managed Payroll handles SIMPLE IRA as part of a fully managed payroll service at $25-$45 per employee per month. Clients do not need to track compliance rules, filing deadlines, or calculation methods related to SIMPLE IRA on their own. Everything is included. Learn about BEG Managed Payroll.
Frequently asked questions
Do employers have to manage SIMPLE IRA themselves?
No. A managed payroll provider handles SIMPLE IRA as part of full-service payroll. BEG manages this for clients at $25-$45 PEPM with no system migration required.
What happens if SIMPLE IRA is handled incorrectly?
Errors related to SIMPLE IRA can trigger IRS penalties, state agency assessments, or employee disputes. Catching and correcting errors before filing is far less costly than after-the-fact corrections.
How does BEG handle SIMPLE IRA for managed payroll clients?
BEG tracks, calculates, and remits everything related to SIMPLE IRA as part of fully managed payroll. Clients do not need to monitor compliance -- that is included in the service at $25-$45 PEPM.
Want payroll fully managed?
BEG handles everything at $25-$45 PEPM. See your exact price in 90 seconds.
About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
Connect with Anthony on LinkedIn →