Editing SIMPLE IRA (section)

{{Short description|Type of retirement plan in United States}}
A '''Savings Incentive Match Plan for Employees Individual Retirement Account''', commonly known by the abbreviation "'''SIMPLE IRA'''", is a type of tax-deferred [[employer]]-provided [[retirement plan]] in the [[United States]] that allows employees to set aside money and [[investment|invest]] it to grow for retirement. Specifically, it is a type of [[Individual Retirement Account]] (IRA) that is set up as an employer-provided plan. It is an employer sponsored plan, like better-known plans such as the [[401(k)]] and [[403(b)]] (Tax Sheltered Annuity plans), but offers simpler and less costly administration rules, as it is subject to [[ERISA]] and its associated regulations.  Like a 401(k) plan, the SIMPLE IRA can be funded with pre-tax salary contributions, but those contributions are still subject to Social Security, Medicare, and [[Federal Unemployment Tax Act]] taxes.<ref name=":0">{{cite web |url=https://www.irs.gov/Retirement-Plans/SIMPLE-IRA-Plan-FAQs-Contributions |date= November 13, 2020 |work= Internal Revenue Service |title=SIMPLE IRA Plan FAQs - Contributions |archivedate= April 20, 2021 |archive-url= https://web.archive.org/web/20210420220137/https://www.irs.gov/retirement-plans/simple-ira-plan-faqs-contributions }}</ref>  Contribution limits for SIMPLE plans are lower than for most other types of employer-provided retirement plans as compared to conventional defined contribution plans like Section 402(g), 401(k), 401(a), and 403(b) plans.