SIMPLE IRA

A less complex way to establish retirement savings for your small business

Get started with a SIMPLE IRA - important (moves focus down)

The Savings Investment Match Plan for Employees (SIMPLE) Individual Retirement Account (IRA) combines the power of payroll contributions with the simplicity of an IRA for small business owners and their employees.

Best if you

  • Have 100 or fewer employees 
  • Do not maintain any other employer-sponsored retirement plan
  • Have employees who earned at least $5,000 in the preceding year and expect to earn at least that amount in the current year
  • Would like to have multiple investment choices
  • Are prepared to choose one of the contribution methods on a yearly basis
  • Would benefit from a plan with no filing requirements

Benefits

  • SIMPLE IRAs are relatively easy to set up and run
  • Contributions are tax-deductible for employers
  • Employee contributions are pre-tax
  • Earnings grow tax deferred
  • Employers can choose a matching feature or a percentage of wages
  • Matching employer contributions belong to the employee immediately and can go with them if they leave

Contributions

  • Employers must contribute up to 3% in matching contributions or 2% in non-elective contributions.
  • Employees can contribute up to 100% of their compensation up to the designated annual cap. Those age 50 and older can contribute another $3,000 per year.
  • Minimum required distributions start at age 70½. There is a 10% penalty for withdrawals made before age 59½. There is a 25% penalty for withdrawals made in the first 2 years of plan participation.

Ready to get started?

Online

Leave us your contact info, and we'll call you back.

By phone

Arrange a meeting.

800-453-7348

By mail

Send certificates and correspondence to:

BB&T Investments
200 S. College St., 11th Floor
Charlotte, NC  28202

Still exploring?

How do you decide when to invest in your retirement savings over your business? Here are some ways to help you make the best choices about retirement as a business owner.

As a business owner, you continually work to improve your offerings, including using advances in technology. Consider how technology can help you manage your business and maximize your success.

Not convinced that a SIMPLE IRA is right for you?

Compare retirement solutions

Investment solutions are provided by BB&T Investments, a division of BB&T Securities, LLC (opens in a new tab), member FINRA (opens in a new tab)/SIPC (opens in a new tab). BB&T Securities, LLC is a wholly-owned nonbank subsidiary of BB&T Corporation. Securities and insurance products or annuities sold, offered or recommended by BB&T Investments are not a deposit, not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may lose value.

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