SIMPLE IRA

A Savings Investment Match Plan for Employees (SIMPLE IRA) is an easy and low-cost way to set up a retirement program for self-employed individuals and small businesses with 100 or fewer employees. Eligible employees can fund their own Simple IRA accounts through regular salary deferrals and Employers make additional contributions.

Overview

What are the benefits of a SIMPLE IRA?

  • For Employers:

    • A way to contribute to your own retirement easily and regularly, and help your employees contribute to theirs
    • A low-cost plan funded mainly by employees
    • Business expense deductions for employee contributions
    • Easy administration with no tax filing
    • Retirement planning tools and resources
    • 24/7 service and support.
  • For Participants:

    • Employer-matched contributions of up to 3% of annual compensation
    • Tax-deferred earnings
    • Pre-tax contributions for participants

Account Pricing

There is no fee to open or maintain an account at Schwab.

  • Minimum opening deposit: $0
  • $0 account open or maintenance fees. Other account fees, fund expenses, and brokerage commissions may apply1.
  • Trade commissions: $0 per online trade;2 $0 per Schwab ETF online trade in your Schwab account3

Find out more about our fees and minimums.


Related Questions

Have questions about this account? Here are responses to some of the most common questions we hear. If you have a specific question that’s not answered here, please call us at 800-435-4000.


Employers - Establish Your Plan

Employers: Follow these instructions to establish and contribute to a new Schwab SIMPLE IRA Plan*. Need help? Call 800-435-4000.

  1. Review the basic plan document, which describes and governs your account, and keep it for your records.
  2. Print and complete the adoption agreement. Retain a copy and return the signed original to Schwab.
  3. Print and complete your employer's agreement. Retain a copy and return the signed original to Schwab.
  4. Read answers to frequently asked questions about the Schwab SIMPLE IRA.
  5. Optional: Review the benefits, features, and contribution eligibility of the plan.

Employer Next Steps

After you’ve done your initial paperwork, here are the next steps.


Participants - Enroll in Your Employer Plan

If your Employer has already established a Schwab SIMPLE IRA retirement savings plan to help you meet your retirement goals, and they have had advised you that you are eligible to participate, follow these instructions to open your SIMPLE IRA Account.

Your Employer should have already provided you with the Schwab SIMPLE IRA Enrollment Kit. Review the enclosed Employee Q& A and the Participation Notice & Summary Description included in that kit to learn all about the Schwab SIMPLE IRA.

  1. Download, print and save the following documents below.
  2. Click on Open a Simple IRA Account below to immediately open your account online.

If you prefer to open your new account by paper application, download the documents below, complete and return them to your Employer.

*Note: Schwab does not accept the 5305 or 5304 IRS Model Plan, or any other provider's Model Plan.

Enrollment Instructions

  1. Download and Read the Employee Instructions and follow the instructions if you plan to print, complete your application by paper.
  2. Download and Complete the Elective Deferral Agreement. Be sure to indicate whether you want your salary deferred as a percentage or fixed amount. Return this document to your employer.
  3. If choosing to complete your Schwab IRA Account Application by paper, complete the application and return it to your employer along with your completed Elective Deferral Agreement. Otherwise, click on "Open a SIMPLE IRA Account" to begin your enrollment and open your Account online.

NOTE: For questions or help completing the SIMPLE IRA forms, see your employer or Plan Administrator.

Take the Next Step

  • Employers-Establish Your Simple IRA Plan today.

    Get detailed instructions above in the
    "Employers - Establish Your Plan" section

    Call 800-435-4000.

  • Participants/Employees – Open a SIMPLE IRA Account

    If your Employer has already established a Schwab SIMPLE Plan, you can apply for your SIMPLE IRA Account.

    You will be required to provide your Employer’s SIMPLE IRA Group ID during the Account Open process.

    Get detailed instructions above in the "Participants - Enroll in Your Employer Plan" section.