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SIMPLE IRA Rules

Avoid costly mistakes by reviewing these rules right now.

By Kailey HagenUpdated Feb 24, 2025 at 2:39 PM

Key Points

  • SIMPLE IRAs let small businesses offer retirement benefits, with a contribution cap of up to $17,600.
  • Employers must contribute to SIMPLE IRAs, with immediate vesting for employees.
  • Early withdrawals from SIMPLE IRAs face a 25% penalty within the first two years.

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