SIMPLE IRA is an employer sponsored retirement account that allows employees to save up to $13,500 (an additional $3,000 if you are 50 or older)
It allows employees to save beyond their own IRA contribution of $6,000 per year (or $7,000 if you are 50 or older)
You as the employer can choose one of two options:
1. Contribute up to 2% of employee’s earnings (W-2), whether they participate or not.
2. Match 100% of their contribution up to 3% of their earnings. (Employer can reduce it as low as 1% for two out of every five years.
You must include any employees earning at least $5,000 in any two preceding years and reasonably expected to earn $5,000 this year.