Reminder: Please submit your annual investment valuation updates. Some updates can be completed directly through our Customer Portal.

Plan ahead for property taxes! Send your deposit by Dec 8 (wire, cashier's check, or money order) to meet the Dec 10 deadline.

Reminder: Please submit your annual investment valuation updates. Some updates can be completed directly through our Customer Portal.

Forge Trust
What We Do
Who We Serve
Resources
FAQs
Forms
Contact Us
Client Login
Get Started

SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE IRA) allows individuals and small businesses with 100 or fewer employees to set aside money in tax-advantaged retirement accounts.

Key Advantages:

Is this retirement account right for you?

Salary deferral plan easily established with less administration

Electronic funding with customized contribution allocation for each participant

Can be paired with other retirement accounts

Eligibility:

  • Available to businesses with 100 or fewer employees and self-employed individuals
  • Includes sole proprietors, partnerships, C corporations, S corporations
  • IRS Form 5304-SIMPLE to accompany account application

Funding the Account:

  • Employers are required to contribute to SIMPLE IRA plans for eligible employees. The employer can choose between a matching contribution (up to 3% of the employee's compensation) or a non-elective contribution (2% of compensation). Employees can also contribute to their SIMPLE IRA.

2024 Employee Contribution Limits:

  • Up to $16,000 in salary deferral for 2024 with an additional $3,500 catch-up contribution if age 50 or older and $16,500  with an additional $3,500 catch-up contribution for those age 50 and over, and a special catch-up contrubtion of $5,250 for those aged 60-63.

2024 Employer Contribution Limits:

  • Employers must either make a non-elective contribution of at least 2% of compensation for all eligible employees, or make a matching contribution of 100% up to the first 3% of compensation.
  • For employers with fewer than 25 employees: The deferral limit is increased to $17,600 and the age 50+ catch-up limit is $3,850, totaling $21,450.
  • For employers with 26 to 100 employees: Employers can elect to apply the increased deferral limits if they agree to a 4% employer match or 3% nonelective contribution.

Withdrawals:

  • Withdraw at any time but a 10% penalty may apply if you are under age 59 ½. If the withdrawal is taken within the first two years of participation in the plan that penalty increases to 25%.
  • Withdrawals are included in income.
  • Required Minimum Distributions (RMDs) start at age 73 (as of 2023)

Administrative responsibilities:

  • Employer generally has no filing requirements, and does not need to file an annual Form 5500 return.
  • Certain annual employee notifications must generally be made by November 1.

Plan setup deadline:

  • Establish by October 1

For more information visit IRS - SIMPLE IRA Plan

Key Advantages:

Salary deferral plan easily established with less administration

Electronic funding with customized contribution allocation for each participant

Can be paired with other retirement accounts

Is this retirement account right for you?

Eligibility:

  • Available to businesses with 100 or fewer employees and self-employed individuals
  • Includes sole proprietors, partnerships, C corporations, S corporations
  • IRS Form 5304-SIMPLE to accompany account application

Funding the Account:

  • Employers are required to contribute to SIMPLE IRA plans for eligible employees. The employer can choose between a matching contribution (up to 3% of the employee's compensation) or a non-elective contribution (2% of compensation). Employees can also contribute to their SIMPLE IRA.

2024 Employee Contribution Limits:

  • Up to $16,000 in salary deferral for 2024 with an additional $3,500 catch-up contribution if age 50 or older and $16,500  with an additional $3,500 catch-up contribution for those age 50 and over, and a special catch-up contrubtion of $5,250 for those aged 60-63.

2024 Employer Contribution Limits:

  • Employers must either make a non-elective contribution of at least 2% of compensation for all eligible employees, or make a matching contribution of 100% up to the first 3% of compensation.
  • For employers with fewer than 25 employees: The deferral limit is increased to $17,600 and the age 50+ catch-up limit is $3,850, totaling $21,450.
  • For employers with 26 to 100 employees: Employers can elect to apply the increased deferral limits if they agree to a 4% employer match or 3% nonelective contribution.

Withdrawals:

  • Withdraw at any time but a 10% penalty may apply if you are under age 59 ½. If the withdrawal is taken within the first two years of participation in the plan that penalty increases to 25%.
  • Withdrawals are included in income.
  • Required Minimum Distributions (RMDs) start at age 73 (as of 2023)

Administrative responsibilities:

  • Employer generally has no filing requirements, and does not need to file an annual Form 5500 return.
  • Certain annual employee notifications must generally be made by November 1.

Plan setup deadline:

  • Establish by October 1

For more information visit IRS - SIMPLE IRA Plan

IRS Contribution Limits

Each year the IRS reviews and sometimes adjusts how much you can contribute to retirement accounts. See how much you are allowed to contribute by account type.

Open a SIMPLE IRA

Start Today