What is the maximum number of employees allowed in a SIMPLE plan?

A SIMPLE (Savings Incentive Match Plan for Employees) plan is a type of retirement plan designed for small businesses, allowing them to provide a simple and effective way for their employees to save for retirement. The key feature of a SIMPLE plan is that it is particularly beneficial for businesses with a limited number of employees.

To qualify for a SIMPLE plan, a business must have 100 or fewer employees who earned $5,000 or more during the preceding calendar year. This limitation is in place to ensure that SIMPLE plans remain accessible and manageable for small business owners, allowing them to offer retirement benefits without the complexity and costs associated with larger plans.

Therefore, businesses can implement a SIMPLE plan as long as they adhere to the maximum employee limit of 100. This makes it an attractive option for small businesses looking to support their employees' retirement savings.