Just keep things simple.

A SIMPLE IRA* is a powerful retirement plan option for businesses with 25 or fewer employees, providing many features of traditional retirement plans, but with lower costs and less paperwork.

SEFCU Wealth Management Services** offer SIMPLE IRAs to businesses that meet these three conditions:

  • You have 25 or fewer employees
  • Each employee received at least $5,000 in compensation for the preceding year and is reasonably expected to receive at least $5,000 during the current year
  • You do not offer any other retirement plan
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For businesses with 25 or fewer employees

Features & Benefits

Here’s How it Works

With just minimal paperwork, you set up Individual Retirement Accounts (IRAs) for each employee. Employees elect to contribute a portion of their salary, up to a certain amount, to the plan. As the employer, you either match contributions dollar for dollar (up to 3% of pay) or contribute 2% of pay for all eligible employees. You can participate as well: the only difference is that your voluntary contributions are based on a percentage of the business’s net earnings, rather than on compensation.

Once the plan is in place, participants reap these advantages:

  • Immediate vesting. Once funds are contributed, they belong to the employee.
  • Tax advantages. Employees contribute pre-tax dollars to the plan, which reduces their current tax bill. (Similarly, your matching contributions are excluded from your business’s taxable income, and you can reap other tax benefits as well.)
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Helps employees save for retirement

Immediate vesting

Tax advantages


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* IRAs are funded with tax deductible contributions in which any earnings are tax deferred until withdrawn. Roth IRAs are funded with non-deductible contributions in which any earnings are tax deferred until withdrawn. Roth IRAs are funded with non-deductible contributions, but as with Traditional IRAs, all earnings are deferred. Unless certain criteria are met, restrictions, IRS penalties, and income taxed may apply on any withdrawals taken from IRAs prior to age 59 1/2.
** Securities and financial planning offered through LPL Financial, a registered investment advisor, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. SEFCU and SEFCU Wealth Management Services are not registered broker/dealers and are not affiliated with LPL Financial.
The LPL Financial representatives associated with this Website may discuss and/or transact securities business only with residents of the following states: CA, CT, FL, MA, ME, NC, NJ, NY, PA, UT, VA, VT, and WI.