# SIMPLE IRA

*Retirement & Benefits — Finicade finance glossary*

A SIMPLE IRA is a low-admin retirement plan for employers with 100 or fewer staff, requiring a mandatory employer contribution of 2–3% of pay.

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.

**Also known as:** SIMPLE plan, savings incentive match plan

**Related terms:** [SEP IRA](https://finicade.com/glossary/sep-ira), [401(k)](https://finicade.com/glossary/401k), [Employer Match](https://finicade.com/glossary/employer-match), [Contribution Limit](https://finicade.com/glossary/contribution-limit), [Solo 401(k)](https://finicade.com/glossary/solo-401k)

Source: https://finicade.com/glossary/simple-ira