Looking for a retirement plan for your employees that's easy and inexpensive to administer? Well, there may be a simple answer, the Savings Incentive Match Plan for Employees of Small Employers, better known as the SIMPLE IRA plan.

A SIMPLE IRA plan lets your employees defer up to $12,500 of compensation in 2018 ($15,500 if age 50 or older). You promise to match employee contributions dollar for dollar up to 3% of pay, or to make a "nonelective" contribution for all eligible employees, whether or not they contribute, equal to 2% of pay.

(The 3% of pay match may be reduced to as little as 1% in any two of five years. And no more than $275,000 of an employee's pay can be taken into account when determining contributions in 2018.)

How do I set up a SIMPLE IRA plan?

You can adopt a SIMPLE IRA plan for 2018 only if you had 100 or fewer employees in 2017 (excluding employees who earned less than $5,000), and you don't contribute to any other retirement plan. If your business qualifies, follow these three simple steps to set up your SIMPLE IRA plan (you have until October 1 to set up a new SIMPLE IRA plan for 2018).

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