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 $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 Increased limit up to $18,1002 Pre-tax and Roth contribution options available. |
| 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 |
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.
