|Participants||Business owners with 100 or fewer employees.|
|Employer contributions||Option 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 $12,500 in the 2017 and 2018 tax years.|
Option 2: Contribute 2% of each eligible employee's compensation. The amount, however, can't exceed $5,400 in the 2017 tax year, and $5,500 in the 2018 tax year.*
Contributions are deductible as a business expense.
|Employee contributions||Up to $12,500 for the 2017 and 2018 tax years ($15,500 if age 50 or older). Employees aren't required to contribute in any given year.|
|Investment choices||More than 100 Vanguard mutual funds.|
|Eligibility||No 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.|
Tool to help you choose
Why choose a Vanguard SIMPLE IRA
- Save money
- The average Vanguard mutual fund expense ratio is 84% 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 800-992-7188.