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SIMPLE IRA Rules

Avoid costly mistakes by reviewing these rules right now.

By Kailey Hagen – Updated Feb 24, 2025 at 2:39PM

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.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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