Simple IRA Contribution Limits
A Savings Incentive Match Plan for Employees (SIMPLE) IRA is a retirement plan for self-employed individuals with less than 100 employees and no other employer retirement plans. Similar to traditional IRAs, SIMPLE IRAs allow you to contribute a portion of your income to your retirement account without paying income tax on your contributions until you withdraw them (presumably when you retire). However, unlike a traditional IRA, the contribution and deduction limit for a SIMPLE IRA is higher, generally $13,500 (in 2020), plus an additional employer contribution. Further, compared to other profit sharing retirement plans, SIMPLE IRAs do not have onerous reporting, administrative or compliance requirements, but you still have the benefit of being able to make comparatively high contributions.