SIMPLE IRA
Also called: SIMPLE plan, savings incentive match plan
A SIMPLE IRA is a low-administration retirement plan for employers with 100 or fewer staff, requiring a mandatory employer contribution — either a 3% match or 2% for everyone. Contribution limits sit below a 401(k), and early withdrawals within the first two years carry a punitive 25% penalty instead of 10%. It's a middle option for firms too small for a full 401(k) but wanting to offer something.