SIMPLE IRA

The SIMPLE IRA is a low-cost, easy to administer retirement plan for self-employed individuals or for small businesses with up to 100 employees. The plan offers most of the benefits of a 401(k) without the annual testing or IRS reporting requirements. Best of all, you can choose from over 70 T. Rowe Price no-load mutual funds to help build your retirement savings.

• Start a SIMPLE IRA
• View Employer FAQs
• View Employee FAQs

• Tax Savings
• Participation Is Voluntary
• Low Costs
• Attractive Investments
• SIMPLE IRA Contribution Limits

• Business owners can save $3,400 or more on this year's tax bill.¹ Employer contributions to a SIMPLE IRA plan generally are deductible as a business expense.
• Personal tax savings: Salary deferral contributions reduce taxable income, which can mean a valuable tax break.
• Tax-advantaged savings: Any SIMPLE IRA account growth is tax-deferred until the money is withdrawn, usually during retirement.

• Eligible employees choose if, and how much, to contribute to their SIMPLE IRA.
• Unlike other kinds of retirement plans, a SIMPLE IRA plan has no required level of participation.

• Starting a T. Rowe Price SIMPLE IRA plan is free.
• T. Rowe Price mutual funds are free of up-front loads or sales commissions.
• We keep our mutual fund expenses low, so more of your money is invested.²
• An annual $25 administrative fee is charged for each mutual fund account with a balance of less than $5,000. The fee is waived for shareholders with $50,000 or more or households with $100,000 or more in total assets at T. Rowe Price. Assets held in a 529 plan, a plan that is part of the Century Program, or assets held in a plan that was/is recordkept in the Retirement Plan Services division of T. Rowe Price are not counted toward these limits. The fee is capped at $100.
• There is a $25 closeout fee applied to a SIMPLE IRA account that is closed at T. Rowe Price. The fee will be deducted automatically from the proceeds of the redemption from each mutual fund unless, at the time of redemption, the annual administrative fee for the year has been paid. The closeout fee applies regardless of the size of the mutual fund investments.

• Choose from over 70 T. Rowe Price no-load stock, bond, or money market mutual funds to help build a diversified retirement portfolio.
• Check the most recent performance of our mutual funds.

Elective salary deferral limits for SIMPLE IRA plan participants.

• Matching contributions: You match each participant's contributions dollar for dollar up to 3% of compensation each calendar year (the match may be reduced to as little as 1% in no more than two out of five consecutive calendar years). With this option, you make employer contributions only to employees who contribute to the SIMPLE IRA plan.
• Nonelective contributions: You make nonelective contributions of 2% of compensation³ for each eligible employee, regardless of whether the employee chooses to contribute to the plan. If you choose this option, a SIMPLE IRA must be established for each of your eligible employees, even if they choose not to make salary reduction contributions.