Planning for retirement is a critical aspect of financial well-being, and for small business owners and their employees, exploring retirement savings options is essential. The Savings Incentive Match Plan for Employees (SIMPLE) Individual Retirement Account (IRA) provides a straightforward and accessible retirement savings solution. In this article, we will delve into what a SIMPLE IRA is, its key features, and the advantages it offers to small businesses and their employees. What is a SIMPLE IRA? A SIMPLE IRA is a retirement savings plan designed for small businesses with fewer than 100 employees. The acronym stands for Savings Incentive Match Plan for Employees IRA, emphasizing the plan’s focus on both employee contributions and employer matching or non-elective contributions. How Does a SIMPLE IRA Work? A SIMPLE IRA operates as a type of employer-sponsored retirement plan that allows eligible employees to contribute a portion of their salary on a pre-tax basis. Employers are required to make contributions to the plan on behalf of their employees, either as matching contributions based on employee contributions or as non-elective contributions. Eligibility and Contribution Limits To be eligible for a SIMPLE