SIMPLE IRA

Give your employees a reason to save for retirement

Simple IRA Eligibility

Keep retirement plans simple

A SIMPLE IRA is best for businesses under 100 employees or self-employed individuals.

  • You're eligible if you don't offer another employer-sponsored plan
  • Your employees must have earned at least $5,000 from you in each of 2 previous years
  • You expect to earn at least $5,000 in the current year

Simple IRA contributions

Required match

Employers must contribute up to a 3% match or 2% non-elective contributions.

Employee contribution limits

Employees can contribute up to 100% of their compensation annually up to $16,500.

Encourage saving for retirement

Give your employees an incentive to plan for their futures while you earn a tax deduction or credit.

Simple IRA withdrawals

Built for long-term saving

Withdrawals made within the first 2 years of plan participation may lead to a 25% penalty fee.

Withdraw without penalty

If you're 59 1/2, all withdrawals are permitted penalty-free but will be subject to income taxes.

Penalty for early disbursements

If you make any withdrawal before the age of 59 1/2, there's a 10% penalty fee in addition to income taxes.

Your investments in securities and insurance products and services are not insured by the FDIC or any other federal government agency and may lose value.  They are not deposits or other obligations of, or guaranteed by any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amounts invested. There is no guarantee that a strategy will achieve its objective.

About the Entities, Brands and Services Offered: First Citizens Wealth™ (FCW) is a marketing brand of First Citizens BancShares, Inc., a bank holding company. The following affiliates of First Citizens BancShares are the entities through which FCW products are offered. Brokerage products and services are offered through First Citizens Investor Services, Inc. ("FCIS"), a registered broker-dealer, Member FINRA and SIPC. Advisory services are offered through FCIS, First Citizens Asset Management, Inc. and SVB Wealth LLC, all SEC registered investment advisors. Certain brokerage and advisory products and services may not be available from all investment professionals, in all jurisdictions or to all investors. Insurance products and services are offered through FCIS, a licensed insurance agency. Banking, lending, trust products and services, and certain insurance products and services are offered by First-Citizens Bank & Trust Company, Member FDIC, and an Equal Housing Lender, and SVB, a division of First-Citizens Bank & Trust Company. icon: sys-ehl

All loans provided by First-Citizens Bank & Trust Company and Silicon Valley Bank are subject to underwriting, credit and collateral approval. Financing availability may vary by state. Restrictions may apply. All information contained herein is for informational purposes only and no guarantee is expressed or implied. Rates, terms, programs and underwriting policies are subject to change without notice. This is not a commitment to lend. Terms and conditions apply. NMLSR ID 503941

For more information about FCIS, FCAM or SVBW and its investment professionals, visit FirstCitizens.com/Wealth/Disclosures.

See more about First Citizens Investor Services, Inc. and our investment professionals at FINRA BrokerCheck.

Account openings are subject to normal bank approval.

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This material is for informational purposes only and is not intended to be an offer, specific investment strategy, recommendation or solicitation to purchase or sell any security or insurance product, and should not be construed as legal, tax or accounting advice. Please consult with your legal or tax advisor regarding the particular facts and circumstances of your situation prior to making any financial decision. While we believe that the information presented is from reliable sources, we do not represent, warrant or guarantee that it is accurate or complete.

Third parties mentioned are not affiliated with First-Citizens Bank & Trust Company.