Business Account
SIMPLE IRA Account with Accuplan
Low-cost retirement savings for small businesses with up to 100 employees.
A retirement plan built for small business
A retirement benefit your business can actually run.
A SIMPLE IRA is a good fit for small businesses with 100 or fewer employees, self-employed workers, and owner-operators who want to save more than the $7,000 a personal IRA allows. Setup takes one IRS form, with no annual filing or compliance testing. Every dollar the business contributes is tax-deductible, employees can choose pre-tax or Roth contributions through payroll, and everything is 100% vested from day one.
2026 at a glance
The numbers you'll come back to.
$17,000
Employee deferral limit
+$3,500
Catch-up at age 50
+$5,250
Bigger catch-up, ages 60 to 63
3% / 2%
Employer match or non-elective
Roth
Permitted under SECURE 2.0
100%
Vested, day one
Limits
SIMPLE IRA Contributions (2026).
Here is what employees and employers can contribute, in plain language. Numbers update each year. Recent law changes added a Roth option and a bigger catch-up for workers in their early 60s.
A few terms we'll use
- Deferral
- Money an employee chooses to put into their IRA, taken out of their paycheck before it lands in their bank account.
- Catch-up
- Extra contribution room for workers age 50 and over so they can save more as retirement gets closer.
- Employer match
- Money the business adds to an employee's IRA based on how much that employee contributes.
- Non-elective
- Money the business adds for every eligible employee, whether the employee contributes or not.
- Pre-tax
- Contributions made before income tax is taken out. You owe the tax later, when you withdraw the money in retirement.
- Roth
- Contributions made after income tax is taken out. In return, qualified retirement withdrawals come out tax-free.
Employee deferrals
How much an employee can put in from their paycheck each year.
$17,000
Standard limit
The most an employee can defer from their paycheck in 2026, before any employer contribution.
+$3,500
Catch-up (age 50+)
Workers 50 and over can save extra. That brings the total they can defer to $20,500.
+$5,250
Bigger catch-up (60 to 63)
A larger catch-up for the years right before retirement. Total they can defer is about $22,250.
Catch-up contributions exist so workers can save more in the years they are closest to retiring. They are useful for anyone who started saving late or wants to accelerate at the end.
Pay tax now or later
Employees pick how their contributions are taxed. Same account, two tax treatments.
Pre-tax (traditional)
Contributions come out before taxes, lowering this year's tax bill. The money grows untaxed. Withdrawals in retirement are taxed like regular income.
Roth (post-tax)
Contributions are made with after-tax pay, so there is no tax break today. The money grows tax-free, and qualified retirement withdrawals are tax-free too.
Employers can also make their match or non-elective contribution as Roth if the employee chooses. Those amounts show up as taxable wages in the year they are contributed.
Employer contributions
The business has to put money in too. Pick one of two methods each year.
Option 1, match up to 3%
Match each employee dollar-for-dollar on what they contribute, up to 3% of their pay. In any 2 out of 5 years, this can drop as low as 1%.
Option 2, 2% for everyone
Contribute 2% of pay for every eligible employee, even ones who do not contribute themselves. The 2% is calculated on pay up to $360,000.
The 3% match has a built-in ceiling. You cannot match more than the employee actually puts in. The $360,000 pay cap only applies to the 2% method.
Who can use it and how it runs
The basic rules for the business and its employees.
Up to 100 employees
The business qualifies if it has 100 or fewer employees who earned at least $5,000 the year before.
Which employees qualify
Workers who earned at least $5,000 in any 2 past years and are expected to earn $5,000 this year. Employers can choose to be more generous than that.
Solo and self-employed
Sole proprietors and self-employed workers can open a SIMPLE IRA just for themselves. No staff required.
Runs through payroll
Employee contributions are taken out of each paycheck and sent straight to the IRA. There is no separate paperwork for the employee.
100% vested, day one
Everything in the account belongs to the employee right away, including the employer's contributions. Nothing to forfeit if they leave.
One plan at a time
In a year you offer a SIMPLE IRA, you generally cannot offer another retirement plan like a 401(k) at the same time.
Pre-tax growth
Pre-tax contributions and their earnings grow without being taxed. Tax is paid when the money comes out in retirement.
Roth growth
Roth contributions and their earnings grow tax-free. Qualified withdrawals in retirement are not taxed at all.
If the SIMPLE rules do not fit your business, ask us about a SEP IRA or Solo 401(k) instead.
How to start
Setting up your SIMPLE IRA.
Four steps from sign-up to your first contribution. We handle the paperwork.
Open your account
Fill out a short online form with your business info. We verify your identity and your account is ready.
File one IRS form
Sign IRS Form 5305-SIMPLE to start the plan. This tells the IRS where your contributions will be held.
Tell your team
Share the plan with eligible employees so they can sign up.
Open an IRA for each employee
Each employee gets their own SIMPLE IRA. Accuplan handles the paperwork.
Frequently asked
SIMPLE IRA FAQs.
How much do employers need to contribute?
SIMPLE IRAs require an employer contribution each year. You pick one of two methods.
- Match employees dollar-for-dollar up to 3% of pay. The match can drop as low as 1% in any 2 of 5 years.
- Pay 2% of compensation to every eligible employee, even ones who do not contribute themselves. For 2026, that 2% is calculated on up to $360,000 of pay.
Are there employee contribution limits?
For 2026.
- Standard deferral. $17,000
- Catch-up for ages 50 to 59 and 64+. Extra $3,500, total up to $20,500
- Bigger catch-up for ages 60 to 63 (added by SECURE 2.0). About $5,250, total up to roughly $22,250
These limits apply to employee contributions only. They are separate from the employer match or non-elective contribution.
Can employees make Roth contributions?
Yes. Under SECURE 2.0, employees can choose to make their SIMPLE IRA contributions as Roth (post-tax) instead of pre-tax. Roth contributions are taxed upfront. Qualified withdrawals in retirement are tax-free.
Employers can also make their match or non-elective contribution as Roth if the employee chooses. Those amounts show up as taxable wages in the year they go in.
Who can participate in a SIMPLE IRA?
An employee qualifies if they earned at least $5,000 from the employer in any 2 past years and are expected to earn at least $5,000 in the current year. Employers can choose to be more generous than that.
How much will a SIMPLE IRA cost with Accuplan?
Accuplan charges an annual fee of $349.95 and a one-time account establishment fee of $50.
What are the employee advantages of a SIMPLE IRA?
Employees get employer contributions, pre-tax or Roth salary deferrals, and tax-advantaged growth. Every dollar is 100% vested the moment it goes in.
Are contributions fully vested?
Yes. All contributions from both employees and employers are 100% vested the moment they go in. There is no vesting schedule.
Keep reading
More on SIMPLE IRAs and business retirement plans.
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Using Your 401(k) to Buy Real Estate
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