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SIMPLE IRAs

Overview SEP IRAs SIMPLE IRAs SEP or SIMPLE Comparison FAQs

Plan Participants


View your balance, statements, update personal information, perform transactions and more.

Plan Sponsors


Make plan updates, add employees, change announcements, enrollment dates and more.

Plan sponsors

SIMPLE IRAs are designed for small companies that have 100 or fewer employees and do not currently sponsor another qualified retirement plan.

Tax advantages
  • Employer contributions are tax-deductible as a business expense.
  • Employee salary deferrals are made with pre-tax dollars, which reduces current taxable income.
  • Any investment earnings grow tax-deferred until withdrawn, usually during retirement when investors are in a lower tax bracket.
Other benefits
  • Easier to administer than a 401(k)
  • No annual tax filings or complex IRS regulations
  • Flexibility to choose different employer contribution methods
  • Broad range of investment choices
Employee eligibility requirements*

Eligibility may be limited to employees who:

  • Have earned at least $5,000 in compensation from your firm in any two previous years
  • Are expected to earn at least $5,000 at your company during the current year

* Requirements may be less restrictive to include more employees, if desired.

Employee contributions
  • Eligible employees can contribute up to 100% of compensation, to a maximum of $12,000 for the 2013 and 2014 plan years.
  • Employees age 50 and older can make additional "catch-up contributions" of $2,500, for a total of $14,500 for the 2013 and 2014 plan years.
Employer contributions

Employers are required to make tax-deductible contributions each year, using one of these two methods:

  • Matching: Employer matches participant contributions dollar-for-dollar up to 3% of compensation or each employee’s maximum allowable contribution, whichever is less. Matches can be reduced to as low as 1% in any two out of five years, as long as employees receive the proper notification.
  • Non-elective: Employer contributes 2% of compensation (up to a maximum of $5,100 for the 2013 and $5,200 for the 2014 plan years) to all eligible employees, even if they don't participate in the SIMPLE IRA.
How to get started
  • Employer fills out IRS Form 5304-SIMPLE and an Employer Adoption Agreement.
  • Employees fill out Participant Enrollment forms.
  • You can receive these forms from your advisor or by contacting our Fund Services at 1-800-480-4111.

The information above is not intended to provide and should not be relied on for accounting, legal and tax advice or investment recommendations. The views and strategies described may not be suitable to all readers. Please contact your financial professional or tax advisor for additional information.

Asset allocation/diversification does not guarantee investment returns and does not eliminate the risk of loss.

IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.