SEP and SIMPLE IRA
Position yourself as the go-to advisor for small business retirement planning with SEP and SIMPLE IRAs. These flexible, low-maintenance plans help you expand your book of business, strengthen client relationships, and deliver high-value retirement solutions that meet the needs of business owners and their teams.
Deliver more value with small business IRA options
SEP and SIMPLE IRAs give you a powerful way to grow your practice by offering small business clients a streamlined, tax-advantaged retirement plan. With increasing demand for small business IRA options, and federal and state emphasis on small business employers providing a retirement savings vehicle for their employees, now is the time to deliver flexible, low-cost solutions that strengthen your client relationships and expand your search.
Advisor advantages
Fast, online setup: Launch a SEP or SIMPLE IRA in as little as 15 minutes.
Flexible investment platform: Leverage the same open architecture platform as Ascensus 401(k) plans.
Multiple compensation models: Choose from fee-based, 25 bps commission-based, or 50 bps commission-based.
Growth potential: Offer scalable retirement plan options that help you retain and grow client assets.
Client benefits that reinforce your value
No employer-level plan fees: Deliver cost-effective solutions for small business clients.
Tax-deductible contributions: Help clients reduce business tax liability while adding value to your services.
Advisor-curated investments: Align investment options with clients’ business objectives.
Dedicated IRA service team: Offer responsive support that enhances your clients’ experience.
Key differences: SEP vs SIMPLE IRA
SEP IRA |
SIMPLE IRA |
|
| SEP IRA Overview | SIMPLE IRA Overview | |
| 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 2025 | Must include employees earning at least $5,000 in the current year and any two preceding years |
| Employee contributions | Generally, not allowed | Up to $16,500 in 2025 |
| Employer contributions | Flexible; limited annually to the lesser of $70,000 for 2025 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 |
