A Savings Incentive Match Plan for Employees Individual Retirement Account, most commonly known as a SIMPLE IRA is a tax-deferred employer provided retirement plan that allows employees to set aside money and invest it to grow for retirement.
A SIMPLE IRA is an employer sponsored plan similar to a 401K but it offers simpler and less expensive administration rules and it is not subject to ERISA regulations.
Limits. Contribution limits are lower than most of the other types of employer-provided plans. Contributions are made up of salary reduction contributions and employer contributions. The amount an employee chooses to have the employer contribute on their behalf cannot exceed $13,500 in 2020 and 2021.
For additional information see Publication 4334.
For more detailed information regarding SIMPLE IRA's, please visit IRS Publication 590.