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Small-business plans—easy, low-cost ways to save for retirement

Maximize employee contributions with this flexible plan.

Quick facts

ParticipantsBusiness owners with 100 or fewer employees.
Employer contributionsOption 1: Match up to 3% of each eligible employee's compensation (which can be reduced to as low as 1% in any two out of five years). The amount, however, can't exceed $12,000 in the 2014 tax year or $12,500 in the 2015 tax year.
Option 2: Contribute 2% of each eligible employee's compensation. The amount, however, can't exceed $5,200 in the 2014 tax year or $5,300 in the 2015 tax year.*

Contributions are deductible as a business expense and not required every year.
Employee contributions
  • Up to $12,000 for the 2014 tax year ($14,500 if age 50 or older).
  • Up to 12,500 for the 2015 tax year ($15,500 if age 50 or older).

Employees aren't required to contribute in any given year.

Investment choicesMore than 100 Vanguard mutual funds.
EligibilityNo age restrictions. Employees must earn a minimum amount specified by the employer during any two preceding years and expect to earn at least $5,000 in the current year.
Account service fees$25 per year for each Vanguard fund in a SIMPLE IRA. This fee is waived if you are a Voyager, Voyager Select, Flagship, or Flagship Select client.

Tools to help you choose

Why choose a Vanguard SIMPLE IRA

Save money
On average, Vanguard mutual fund expense ratios are 82% less than the industry average.** Our plans also don't require a setup fee.
Find the right investments
We offer a diversified fund lineup with no minimum initial investment that has delivered solid long-term investment results.† See our listings in Money magazine.††
Simplify your plan
Take a tour of Small Business Online to see how you can manage and make contributions to your plan. Your employees can use vanguard.com to track their investments.

It's easy to get started

We can provide all the help you need to set up your plan. Call a small-business specialist at 800-662-2739.

Money magazine named 16 Vanguard funds on its "Money 50" list—more than any other fund company.