A SIMPLE IRA (Savings Incentive Match Plan for Employees IRA) is a type of retirement plan that allows small businesses with fewer than 100 employees to provide a tax-advantaged retirement savings option for their employees.

The SIMPLE IRA plan allows both the employer and the employee to make contributions to the employee's IRA account, similar to a 401(k) plan. The contributions and earnings on the account grow tax-deferred until the employee takes a distribution in retirement.