What is the plan establishment deadline?

To fund for the current year, the plan must be established by October 1 of that year. If a business is created after October 1, the plan must be established as soon as administratively feasible (special rules apply).

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SIMPLE IRA

Q: Who contributes to a SIMPLE IRA?

The plan is funded by employee salary deferrals and required employer contributions.

Q: How much are employers required to contribute?

You can choose to contribute a flat 2% of compensation for each eligible employee regardless of participation, or a dollar-for-dollar match of employee salary-deferral contributions capped at 3% of compensation. If needed, the cap may be reduced as low as 1% for any 2 years during a 5-year period.

Q: What are the employee contribution limits?

Employee contributions will vary based on your eligible compensation and contribution year. For specific details please refer to the SIMPLE IRA fact sheet (PDF) for the most current limits.

Q: Who is eligible to participate in a SIMPLE IRA?

Any employee who received $5,000 or more in compensation in any 2 calendar years and is reasonably expected to earn $5,000 or more in the current year.

Q: What investment choices are available?

A full range of investment choices is available, including stocks, bonds, options, ETFs and well-known mutual funds. You and your employees may also consider a savings IRA from Bank of America, N.A. Learn more about investment choices .

Q: How much does it cost to set up and administer a SIMPLE IRA?

There are no setup or administrative fees for your business or your employees.

Q: Does the plan take a lot of time to administer?

Not at all. Merrill helps you save time and effort with Merrill E-Contribs for Small Business Retirement Accounts™ - an easy-to-use web-based contribution service. Go to E-Contribs .

Q: What if I prefer to invest with an advisor?

Get help when you want it by meeting with a Financial Solutions Advisor in person or on the phone. Learn more about working with an advisor .

Q: What are the advantages for employees?

Interest, dividends, employer contributions and other investment earnings have the potential to grow tax deferred until they are withdrawn at retirement.

Q: When are contributions fully vested?

Employee and employer contributions are 100% vested immediately.

Attract talented employees while saving for your own retirement

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A Savings Incentive Match Plan for Employees (SIMPLE) IRA is a plan for businesses with 100 or fewer employees. You make contributions for your employees, who can also contribute through salary deferrals.

SIMPLE IRA Features

Contribute significantly more than you could with a traditional IRAFootnote ²

Make fixed contributions that are generally tax deductible by the business Footnote ³

Help fund your employees and your own retirement with a cost-efficient plan

Options beyond State Mandated Programs to grow with your business

Don't Miss Out: Up to $1000 credit per employee for eligible employer contributions and qualified plan start-up tax credits.Footnote ³

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Learn even more about this plan with our SIMPLE IRA fact sheet

^$0

setup fee (for accounts opened online)

^$0

annual administrative fees (for accounts opened online)

^$0

unlimited online stock and ETF tradesFootnote ¹ Footnote *Other fees may apply

Bring value to your business without the extra fees

If you open your plan online, there are no setup fees or annual administrative fees, plus you get unlimited $0 online stock and ETF trades if you're investing with your Merrill Edge Self-Directed account.Footnote ¹

Which retirement account is right for your business?

Compare the features of retirement accounts available at Merrill, find out which one works best for you, your business and any employees you may have.

Try our Retirement Account selector tool

What's a key difference between a SIMPLE IRA and a SEP IRA?

A SIMPLE IRA allows both the business owner and the employees to make contributions. With a SEP IRA, only business owners make contributions, both for themselves and for their employees.

Learn more about all small business solutions available at Merrill

Get started with a SIMPLE IRA in 3 easy steps

Decide how you want to invest

Manage your own investments or have Merrill investment professionals manage your portfolio for you, with the option to work with an advisor.

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Open your account

It's easy to set up your account (any employees you have will set up their own accounts), and there are no program or administrative fees for accounts opened online.

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Add funds

Quickly and easily fund accounts for you and your employees with Merrill E-Contribs for Small Business Retirement Accounts, a free platform.

Go to E-Contribs at Merrill

Explore all plans available for small business

Get more details about small business retirement plans available at Merrill and find the one that works best for your needs.

SEP IRA plans at Merrill Small Business 401(k) plans at Merrill Individual 401(k) plans at Merrill

Interested in getting more details on employer retirement plans?

Compare a SIMPLE IRA to an Individual 401(k) at Merrill

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If you have questions, contact a specialist at 855.667.9451

Frequently Asked Questions

Expand all

Who contributes to a SIMPLE IRA?

How much are employers required to contribute?

What are the employee contribution limits?Footnote ³

Who is eligible to participate in a SIMPLE IRA?

What investment choices are available?

How much does it cost to set up and administer a SIMPLE IRA?

Does the plan take a lot of time to administer?

What if I prefer to invest with an advisor?

What are the advantages for employees?

When are contributions fully vested?

Can participants take a loan or withdraw funds from their SIMPLE IRA before they reach age 59½?

What if my business grows beyond 100 employees?

Is IRS reporting required?

Footnote

Other fees may apply. Free and $0 means there is no commission charged for these trades. $0 option trades are subject to a $0.65 per-contract fee. Sales are subject to a transaction fee of between $0.01 and $0.03 per $1,000 of principal. There are costs associated with owning ETFs. To learn more about Merrill pricing, visit our Pricing page.

Footnote

Merrill waives its commissions for all online stock, ETF and option trades placed in a Merrill Edge^® Self-Directed brokerage account. Brokerage fees associated with, but not limited to, margin transactions, special stock registration/gifting, account transfer and processing and termination apply. $0 option trades are subject to a $0.65 per-contract fee. Other fees and restrictions may apply. Pricing is subject to change without advance notice.

For broker-assisted trades through Merrill Edge, you will be charged a fee equal to the lower of $29.95 or 5.00% of the principal amount of the transaction. Further, there are indirect fees, such as annual management and other similar fees, that are charged by the manager or sponsor of an exchange-traded fund and of a closed-end fund, as disclosed in the product's prospectus.

Footnote

Contribution and compensation limits are subject to a cost-of-living adjustment annually pursuant to the Internal Revenue Code. Contribution and compensation limits for subsequent years may vary.

Footnote ³ For more information, visit the Go to third-party website IRS website. popup

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Investment products offered through Merrill Lynch, Pierce, Fenner & Smith Incorporated, and insurance and annuity products offered through Merrill Lynch Life Agency Inc.:

Are Not FDIC Insured	Are Not Bank Guaranteed	May Lose Value
Are Not Deposits	Are Not Insured by Any Federal Government Agency	Are Not a Condition to Any Banking Service or Activity

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory and other services. Additional information is available in our Client Relationship Summary (PDF).

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp.").

Merrill Lynch Life Agency Inc. ("MLLA") is a licensed insurance agency and wholly owned subsidiary of BofA Corp.

Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation.

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Unlimited $0 Trades

With Merrill Edge Self‑Directed, get unlimited free online stock, ETF and option trades with no trade or balance minimumsFooter footnote ^b

Options contracts and other fees may applyFooter footnote ^a

Open an account with Merrill Edge Self-Directed

Footer footnote
Other fees may apply. Free and $0 means there is no commission charged for these trades. $0 option trades are subject to a $0.65 per-contract fee. Sales are subject to a transaction fee of between $0.01 and $0.03 per $1,000 of principal. There are costs associated with owning ETFs. To learn more about Merrill pricing, visit our Pricing page.
Footer footnote

Investment products offered through Merrill Lynch, Pierce, Fenner & Smith Incorporated, and insurance and annuity products offered through Merrill Lynch Life Agency Inc.:

Are Not FDIC Insured

Are Not Bank Guaranteed

May Lose Value

Are Not Deposits

Are Not Insured by Any Federal Government Agency

Are Not a Condition to Any Banking Service or Activity

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.

The performance data contained herein represents past performance which does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance information current to the most recent month end, please contact us.

Net Asset Value (NAV) returns are based on the prior-day closing NAV value at 4 p.m. ET. NAV returns assume the reinvestment of all dividend and capital gain distributions at NAV when paid.

Market price returns are based on the prior-day closing market price, which is the average of the midpoint bid-ask prices at 4 p.m. ET. Market price returns do not represent the returns an investor would receive if shares were traded at other times.

Returns include fees and applicable loads. Since Inception returns are provided for funds with less than 10 years of history and are as of the fund's inception date. 10 year returns are provided for funds with greater than 10 years of history.

Before investing consider carefully the investment objectives, risks, and charges and expenses of the fund, including management fees, other expenses and special risks. This and other information may be found in each fund's prospectus or summary prospectus, if available. Always read the prospectus or summary prospectus carefully before you invest or send money. Prospectuses can be obtained by contacting us.

Mutual Funds and Exchange Traded Funds: Expense Ratio – Gross Expense Ratio is the total annual operating expense (before waivers or reimbursements) from the fund's most recent prospectus. You should also review the fund's detailed annual fund operating expenses which are provided in the fund's prospectus.

Closed End Funds: Expense Ratio – Gross Expense Ratio is the ratio of the fund's total annual operating expense (before waivers or reimbursements) to average net assets as of the date of the fund's most recent annual report. You should also review the fund's detailed annual operating expenses disclosed by the fund in its annual reports, semi-annual reports, and other public filings.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation ("BofA Corp.").

Merrill Lynch Life Agency Inc. ("MLLA") is a licensed insurance agency and wholly owned subsidiary of BofA Corp.

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