A Savings Incentive Match Plan for Employees (SIMPLE) comes in two flavors: the SIMPLE IRA or the SIMPLE 401(k). Business owners often opt for the SIMPLE IRA. Contributions to a SIMPLE are made on a pretax basis. Contribution limits to SIMPLEs are adjusted annually for inflation. In 2025, employees may generally elect to contribute up to $16,500, up from $16,000 in 2024. The catch-up contribution limit that generally applies for employees age 50 or over who participate in most SIMPLE plans will remain $3,500 for 2025. Beginning in 2025, taxpayers age 60 to 63 will be able to make catch-up contributions up to $5,250. For more about 2025 retirement plan contributions: https://bit.ly/3Yuiw6U
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