Simplified Options for Small Businesses

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




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 $750 in compensation in 2024:

Must include employees earning at least $5,000 in the current year and any two preceding years

Employee contributions

Generally, not allowed

Up to $16,000 in 2024

Employer contributions

Flexible; limited annually to the lesser of $69,000 for 2024 or 25% 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.


Are you an employer without an advisor? Explore additional small business solutions

CoPilot small business 401(k)

Individual(k) plan options

SEP IRA featuring Vanguard

SIMPLE IRA featuring Vanguard