A simple individual retirement account (IRA) with limited eligibility
Voluntary and employees can contribute a maximum of $6,000 per calendar year. The company will contribute a maximum of 3% of employee contributions per any calendar year.
To gain eligibility, an employee must have earned at least $5,000 in compensation in a prior calendar year and expect to earn at least $5,000 compensation in the current calendar year. (The above description is a brief and simple explanation of the plan.)