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SIMPLE Plans

​SIMPLE IRA

​SIMPLE 401(K)

Employee Eligibility Requirements

Any employee earning $5,000 or more in any two prior years and expected to earn $5,000 in the current year.

Any employee earning $5,000 and the later of 21 years of age or 1,000 service hours in a prior year (may be less pursuant to plan terms).

Employee Deferral Limit

$13,000 per plan year, up to 100% of compensation

$13,000 per plan year, up to 100% of compensation

Employer Contribution Limit

If the employer elects the 3% deferral option, up to $8,400 annually ($280,000 x .03); if the employer elects the 2% deferral option, up to $5,600 annually ($280,000 x .02). Limits are per participant.

If the employer elects the 3% deferral option, up to $8,400 annually ($280,000 x .03); if the employer elects the 2% deferral option, up to $5,600 annually ($280,000 x .02). Limits are per participant.

Participant Loans

Not permitted

Permitted if allowed by plan document.

Rollovers

Permitted to IRA without penalty only after two years — may roll into another SIMPLE IRA prior to two years.

Permitted to IRA or qualified plan immediately.

Excise Tax

Withdrawals during the first two years subject to a 25% excise tax; 10% thereafter until employee attains age 59 1/2.

Withdrawals subject to 10% penalty tax on distributions prior to age 59 1/2.

Competitive Advantage

Minimal administration expenses, and no 5500 filings or 415 limit testing required.

Loans permitted; may have more restrictive eligibility requirements; exclusion of employees under 21; and bankruptcy protection under ERISA.

Securities offered through ELE Wealth Advisors, Inc., member FINRA. Advisory services offered through ELE Advisory Services, Inc. EWAI and EAS are affiliated through common ownership and control. Financial Wealth Solutions, Inc. and 1st Consumer Insurance Agency Inc. are not affiliated with EWAI or EAS.
FINRA Broker Check https://www.finra.org/compliance-tools/rule-2210-brokercheck

Financial Wealth Solutions, Inc. · 12200 East Briarwood Ave Suite 165
Centennial · CO 80112

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