SIMPLE IRAs are popular among small employers looking to give workers an easy way to save for retirement. Limits on SIMPLE IRA contributions are indexed to inflation, and similar indexing led to a boost for those who use more sophisticated 401(k) plans. However, the inflation adjustment wasn't enough to lead to a change in the SIMPLE IRA contribution limits. The only clear change is one that will primarily affect high-income participants.
SIMPLE IRAs, or savings incentive match plans for employees, are used most often by self-employed workers and employees of small businesses. SIMPLE IRAs let you set money aside for retirement without forcing an employer to set up a more complicated employer-sponsored retirement plan like a 401(k).
Pay less to the IRS with a SIMPLE IRA. Image source: Getty Images.
Source: Fool.com