Expand
Overview
Plan Details
Compare Plans
FAQ
Why Choose Saturna?
Resources
Get Started

Support and incentivize your employees with SIMPLE retirement savings

A Savings Incentive Match Plan for Employees of Small Employers (SIMPLE-IRA) helps small businesses offer a company-sponsored retirement plan that's easy to manage, tax-advantaged, and flexible. If you’re looking for a low-maintenance retirement plan that allows employee involvement, a SIMPLE-IRA might be the right choice for you.

Get Started
 

Employer and Employee Participation

Unlike SEP-IRAs, where only the employer contributes, SIMPLE-IRAs allow employees to make tax-deferred contributions, giving them more control over their retirement savings.

Flexible Contribution Options

Employers can match employee contributions up to 3% of their salary or opt for a 2% non-elective contribution. This flexibility lets businesses adjust contributions based on financial conditions.

Minimal Administration

SIMPLE-IRAs require less paperwork than other plans and do not need to be reported annually to the IRS. This makes them a hassle-free option for businesses seeking ease of management.

Tax Advantages

For employers and employees, contributions may be tax-deductible. Additionally, any earnings within a SIMPLE-IRA enjoy tax-deferred growth until withdrawn.

Get Started

Plan Details

Plan Eligibility

For Employers

Generally, any small business that employs 100 or fewer employees who earned at least $5,000 in the preceding year can establish a SIMPLE-IRA plan, provided the employer does not concurrently maintain any other employer-sponsored retirement plan. 

For Employees

Eligible employees include those who have earned at least $5,000 in compensation from the employer in any two preceding years (whether or not consecutive), and are reasonably expected to earn $5,000 during the current year. 

While employers cannot make these eligibility requirements more restrictive, they can generally liberalize them to include more employees. 

Plan Options

Matching option

Electing the matching option requires the employer to match each participant’s contributions dollar-for-dollar – up to 3% of compensation but no more than $16,500 for the 2025 plan year. 

Allows the employer to reduce the employer’s match to as little as 1% of each participant’s compensation for any two years in a five-year period.

Non-elective contribution option

Requires the employer to contribute 2% of each eligible employee’s compensation each year, regardless of whether the participant contributes or not.

The maximum annual compensation on which contributions can be based is $350,000 for 2025.

Establishment Deadlines

Employers who want to establish a SIMPLE-IRA plan for the current tax year must set up the plan and notify employees by October 1 of the current tax year. 

An exception applies for businesses which are established after October 1. 

Contributions and Limits

Employer contributions

  • As an employer, you may be able to deduct contributions you make on behalf of your plan participants from your business expenses.
  • Employers can choose from two different contribution methods (matching or non-elective contribution) and can even switch between these options each year, provided certain notification requirements are met.

Employee contributions 

  • Eligible employees can elect to contribute up to 100% of compensation up to a maximum of $16,500 for the 2025 plan year, through salary reduction. 
  • The amount elected by the employee may be expressed as a percentage of compensation or as a specific dollar amount. 
  • As a participant, you and any eligible employees can elect to defer part of your salary and direct that money into an individual SIMPLE-IRA. Because these contributions are deferred before certain taxes are withheld, they actually reduce contributing participants’ taxable income. 
  • Employees aged 50 and over can make additional catch-up contributions up to $3,500 in 2025 (SECURE 2.0: $5,250 for ages 60, 61, 62, and 63).

Contribution Limits

Year

Income Limit

Contribution Limit

Catch-up Limit

2025$350,000Employee: up to 100% of compensation, up to a maximum of $16,500

$3,500 (50 and up)

(SECURE 2.0: $5,250 for ages 60, 61, 62, and 63)


 
 		Employer: Either dollar-for-dollar matching contributions up to 3% of employee's compensation, or fixed nonelective contributions of 2% of compensation.
 


 

SIMPLE-IRAs with Other Retirement Plans

Quick facts

  • If you choose for your company to offer a SIMPLE-IRA, it must be the only retirement plan option. 
  • Employees are able to contribute to another Traditional or Roth IRA.
Withdrawals

Quick facts

  • Contributions are immediately 100% vested — Each employee owns all of the assets in his or her SIMPLE-IRA immediately and can take these assets with them if leaving the company
  • Withdrawals may be subject to income taxes
  • WIthdrawals taken before age 59½ may be subject to tax penalties
Fees

Saturna's IRA Fees

 

Account Fees

Invested in Saturna's affiliated mutual funds onlySelf-Directed Saturna Brokerage IRA1
Account OpeningNoneNone
Account MaintenanceNonePotential inactive account fee2
Statement FeeNoneNone
Low Balance FeeNoneNone
Account ClosingNoneNone

 

Transaction Fees

 


 		Invested in Saturna's affiliated mutual funds onlySelf-Directed Saturna Brokerage IRA1
ContributionsNoneSubject to Commission Schedule
Distributions/Withdrawals3NoneSubject to Commission Schedule

Outgoing wire transfers and overnight delivery of proceeds from sales are subject to prevailing rates.

Trades / ExchangesNoneSubject to Commission Schedule
Account TransfersNoneIn: None4 / Out: $75


 

1 Self-Directed Brokerage IRAs may be subject to fees for services not listed in this chart. Please refer to the Saturna Brokerage Services Commission Schedule (available in the Saturna Brokerage Services Brochure and online at www. saturna.com/sbs) for more details. 

2 Inactive accounts have no trades settle in the calendar year from January 1 through December 31. 

3 Withdrawals may be subject to income taxes, and if taken before age 59½, may be subject to tax penalties. 

4 While Saturna does not have a specific charge for inbound transfers, the previous custodian may charge for the outbound transfer. 

Compare Plans

Compare key features of our retirement plan options at a glance. Click on a plan name to explore detailed information about each offering.

Plan overview
 Health Savings Account401(k)SEP-IRASIMPLE-IRACash Balance plans
Key advantageAn HSA is an investment-based savings account that can be used to pay for qualified medical expenses (as defined by the IRS) for you, your spouse, or your dependent(s).Flexible Employer Contributions
Diverse investment optionsEasy to set up and maintain
Flexible annual funding requirements		Salary deferral plan
Less administration than 401(k)

Higher contribution limits

Predictable benefits

Maximize your savings

Lower your taxes.

Eligible EmployersMust offer in tandem a Qualified High Deductible Health PlanGenerally, any business may establish a 401(k)Any self-employed individual, business owner, or individual who earns more than $750 self-employed incomeBusinesses with 100 or fewer eligible employees and who do not currently maintain any other retirement planGenerally any business may establish a cash balance plan, employees must have worked at least 1,000 hours and have taxable domestic income
Funding ResponsibilityFunded by salary deferral and employer contributionsFunded by salary deferral and employer contributions, if elected under the plan; employer profit sharingEmployer contributions onlyFunded by salary deferral and employer contributionsCash Balance Plans are defined benefit pension plans with required annual contributions
Contribution Flexibility2025: Individual: $4,300
Family: $8,550Mandatory employer matching contributions (if elected) 
Discretionary profit-sharingDiscretionary contributionsMandatory employer contributionsContribute more than $50,000 to your retirement accounts. Currently contribute, or want to contribute 3-4% to employees accounts. Have highly compensated employees.                               
Plan Features
 Health Savings Account401(k)SEP-IRASIMPLE-IRACash Balance plans
Roth Accounts?NoYesNoNoNo
Loans?NoYesNoNoPossible
Age Restrictions?Yes, may exclude employees under age 18Yes
May exclude employees under age 21		Yes
May exclude employees under age 21		NoneYes, may exclude employees under age 21
Employer-Paid Fees?Dependent on planAnnual feeNoneNoneYes
Catch-up Contributions?$1,000 (age 55 and older)YesNoneYesN/A
Additional Details
 Health Savings Account401(k)SEP-IRASIMPLE-IRACash Balance plans
VestingEmployee and Employer contributions are immediately 100% vested

Employee salary-deferrals are immediately 100% vested

Employer contributions may be subject to a vesting schedule

Contributions are immediately 100% vestedContributions are immediately 100% vestedEmployer contributions may be subject to a vesting schedule
Maximum Annual Contribution Per Employee2025:
Individual: $4,300
Family: $8,550

Employee:
The lesser of $23,500 for 2025 or 100% of compensation (plus catch-ups)

Employer:
May be set by plan

Overall maximum contribution (from all sources) is 100% of compensation, not to exceed $70,000 for 2025 (plus catch-ups)

Employee:
N/A

Employer:
The lesser of $70,000 for 2025, or 25% of annual compensation (25% of self-employed income)

Employee:
The lesser of $16,500 for 2025, or 100% of compensation (plus catch-ups)

Employer:
Either match employee contributions dollar-for-dollar up to 3% of compensation (maximum $16,500 for the 2025 plan year); can be reduced to as low as 1% in any 2 out of 5 years

Or

A 2% nonelective contribution of each eligible employee's compensation up to the annual income limits of $350,000 for 2025.

Maximum annual benefit can be up to $280,000 for 2025. Cash balance lump sum maximum for 2025 is $3,500,000. Contribution amounts vary by year, but are based on factors such as the participant's age, income, and estimated years to retirement.
Establishment DeadlinesAnytimeThe last day of the employer's plan year (usually calendar year)Employer's tax-filing deadline, including extensionsOct. 1 of the year in which the plan is being establishedThe deadline to establish a cash balance plan is typically the tax filing deadline for the year the plan is to be effective
IRS Reporting by EmployerForm 8889Form 5500NoneNoneForm 5500

Frequently Asked Questions

What is a SIMPLE-IRA?

If you choose for your company to offer a SIMPLE-IRA, it must be the only retirement plan option. However, Employees can also contribute to another Traditional or Roth IRA.

Can my company offer other retirement plans?

If you choose for your company to offer a SIMPLE-IRA, it must be the only retirement plan option. However, employees can also contribute to another Traditional or Roth IRA.

What are the plan administration responsibilities?

SIMPLE-IRAs feature low cost and minimal administrative requirements.

  • No special plan-level tax reporting is required for the employer each year
  • No discrimination testing required
  • Includes certain annual employee notifications
Why should my company consider a SIMPLE-IRA?

SIMPLE-IRAs, like other employer-sponsored pension plans, allow employers to offer tax-advantaged retirement saving opportunities. SIMPLE-IRAs are particularly appealing for small business owners who:

  • Want flexible contribution options
  • Want to allow employees to contribute, as well
  • Minimize administrative needs
  • Avoid the hassle of discrimination testing
Saturna Logo
Why Choose Saturna?

To learn more about the unique advantages of Saturna’s Employer Services offerings and more, visit our Employer Services landing page 

Knowledgeable, Personalized Service

One

Knowledgeable, Personalized Service

At Saturna Capital, we’re dedicated to making it as easy as possible to set up and manage your company’s employee benefits. We’ll help you customize a complete package to meet your company’s needs, including the choices you make for your SIMPLE-IRA. Throughout the entire process, you can feel confident knowing that you have the support of our expertise.

Broad Investment Choices

Two

Broad Investment Choices

We offer a selection of Saturna no-load mutual funds to meet a variety of investment objectives. By investing in more than one fund, you can tailor your own risk and return objective. In addition to our wide range of Saturna affiliated funds, you can add self-directed brokerage for access to a greater variety of investment vehicles.

Resources

Employer IRA Brochure (includes SEP and SIMPLE)

SIMPLE-IRA Application

Form 5305-SIMPLE: Savings Incentive Match Plan for Employees of Small Employers

Form 5305-SA: SIMPLE Individual Retirement Custodial Account

More IRA Forms

Get Started

Contact us through this form to start the conversation 

Get Started

For more information on how to prepare to establish a SEP-IRA, reference our SEP and SIMPLE IRA Brochure.

Contact

For additional assistance, we encourage you to reach out to our Investor Services team by calling 1-800-728-8762