SEP & SIMPLE IRA
For small business owners, offering a competitive retirement benefit is not only a great way to attract and retain talented employees—it also provides a simple and convenient way to save for their own retirement.
Our SEP and SIMPLE IRA platforms enable advisors to help small business clients and their employees get there.
Advantages of Ascensus SEP and SIMPLE IRAs
SEP and SIMPLE IRAs offer small business owners and their employees a simplified retirement savings solution—and with increased federal and state emphasis on small business employers assisting their employees with retirement readiness, now is the time to consider the benefits of a SEP or SIMPLE IRA.
Benefits for employers:
- No plan fees at the employer level
- Employer contributions are tax deductible for the business
- Employers can determine how much to defer in SEP IRA
- Fund lineups are selected by your advisor to fit your business goals
- Dedicated IRA service team
Benefits for advisors:
- Online purchase and onboarding for easy plan setup in 15 minutes
- Utilizes same open architecture platform as Ascensus 401(k) plans for flexible fund selection
- Three compensation packages available: fee-based, 25 bps commission-based, or 50 bps commission-based
Key differences: SEP IRA vs SIMPLE IRA
|
|
SEP IRA |
SIMPLE IRA |
|
Ideal for |
Sole proprietorships and businesses with few employees |
Businesses with up to 100 employees |
|
Eligible businesses |
Any employer may establish |
Any employer that has less than 100 employees and does not maintain another retirement plan may establish |
|
Eligible employees |
Must include employees who are at least age 21, have worked for your business at least three of the last five years, and earned at least $800 in compensation in 2026 |
Must include employees earning at least $5,000 in the current year and any two preceding years |
|
Employee contributions |
Generally, not allowed |
Up to $17,000 in 2026 |
|
Employer contributions |
Flexible; limited annually to the lesser of $72,000 for 2026 or 25%1 of compensation. Employers don’t have to contribute every year, but when they do, they must contribute to all participants who performed services during the year for which the contributions are made |
Mandatory contributions; either matching up to 3% of compensation or 2% nonelective for each eligible employee |
Download this resource for more information about key benefits and differences among Ascensus’ various retirement plan offerings.
For informational purposes only. This chart provides a high-level comparison only. Plan features, contribution limits, fees, and requirements are based on current law and available information and are subject to change. Actual plan design, administration, and compliance obligations depend on an employer's specific facts and circumstances. Employers should consult their own advisors before selecting or administering a plan.
125% of compensation for employer tax deduction.
2Applies to certain small and electing SIMPLE plans.
