4.SIMPLE IRA
SIMPLE IRA stands for Savings Incentive Match Plan for Employees Individual Retirement Account. A SIMPLE IRA is a retirement plan provided by an employer to employees and is employer-sponsored, similar to a 401(k), where the money is pre-tax. In 2023, the maximum employee contribution limit for SIMPLE IRA is $15,500, and employees aged 50 and above can make additional catch-up contributions of $3,500 (for 2024, the SIMPLE IRA employee contribution limit increases to $16,000, and employees aged 50 and above can make additional catch-up contributions of $3,500).
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