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SIMPLE IRA guides

Plain-English answers to the questions employers actually ask, written from the IRS rules, not marketing copy.

Choosing a PlanThe Best SIMPLE IRA Providers for Small Businesses (2026)Compare the best SIMPLE IRA providers for 2026. Fidelity, Schwab, Merrill, T. Rowe Price, and Ascensus ranked on fees, setup speed, and investment menus.July 21, 2026
IRS Forms & DocumentsForm 8606: How to Report Nondeductible IRAs and Track Basis (2026)Form 8606 tracks after-tax basis in your traditional IRAs so those dollars are not taxed twice: what it does, its three parts, who files it, and the penalty.July 19, 2026
Limits & ContributionsMega Backdoor Roth: How the 2026 After-Tax 401(k) Strategy WorksA mega backdoor Roth uses after-tax 401(k) contributions above your $24,500 deferral, converted to Roth up to the $72,000 annual limit, if your plan allows it.July 19, 2026
Rules & ComplianceThe Pro-Rata Rule: How Roth Conversions Get TaxedThe pro-rata rule pools all your traditional, SEP, and SIMPLE IRAs and taxes each Roth conversion by the ratio of after-tax basis to the total pre-tax balance.July 19, 2026
Rules & Compliance72(t) Distribution: How SEPP Lets You Tap an IRA Before 59½A 72(t) distribution uses substantially equal periodic payments to tap an IRA before 59 1/2 without the 10% penalty. How the three IRS methods and rules work.July 18, 2026
Rules & ComplianceAre SIMPLE IRA Contributions Tax Deductible? Employer and EmployeeAre SIMPLE IRA contributions tax deductible? Employers deduct the match and salary deferrals as a business expense, and employee deferrals come out pre-tax.July 18, 2026
Limits & ContributionsBackdoor Roth IRA: How High Earners Fund a Roth in 2026A backdoor Roth IRA lets high earners past the 2026 income limits fund a Roth up to the $7,500 IRA limit. The pro-rata rule on pre-tax balances is the catch.July 18, 2026
Choosing a PlanCash Balance Plan: Six-Figure Deductions for Older OwnersA cash balance plan is a defined benefit plan built as hypothetical accounts, letting older owners deduct far larger retirement contributions than a 401(k).July 18, 2026
Rules & ComplianceCorrecting SIMPLE IRA Mistakes: EPCRS, VCP, and the DOL FixHow to correct SIMPLE IRA mistakes: use EPCRS self-correction or the VCP filing, fix late deposits through the DOL VFCP, and clear excess contributions.July 18, 2026
Rules & ComplianceInherited IRA Rules: The 10-Year Rule and RMDs (2026)Inherited IRA rules: the SECURE Act 10-year rule ended the stretch for most non-spouse heirs, and annual RMDs apply if the owner died past their required date.July 18, 2026
Limits & ContributionsIRA Contribution Limits 2026: How Much You Can Put InThe 2026 IRA contribution limits: $7,500 combined across your traditional and Roth IRAs, a $1,100 catch-up at age 50, plus Roth income and deduction phaseouts.July 18, 2026
Rules & ComplianceIRA Early Withdrawal Penalty: The 10% Tax and Every Exception (2026)The IRA early withdrawal penalty is a 10% additional tax on distributions before age 59 1/2, but over a dozen exceptions waive it. See who qualifies and how.July 18, 2026
Choosing a PlanProfit Sharing Plan: No Company Profits RequiredWhat is profit sharing? A profit sharing plan funds retirement with discretionary employer money, no company profits required. See how it works and its limits.July 18, 2026
Rules & ComplianceRequired Minimum Distribution Rules for a SIMPLE IRA (2026)Required minimum distribution rules: RMDs from a SIMPLE IRA start at age 73, equal your prior-year balance divided by an IRS factor, and cost 25% if missed.July 18, 2026
Rules & ComplianceRoth IRA Withdrawal Rules: What You Can Take Out and WhenRoth IRA withdrawal rules explained: contributions come out anytime tax-free and penalty-free, plus the two separate 5-year rules for earnings and conversions.July 18, 2026
Choosing a PlanSafe Harbor 401(k): How It Works and When It Beats a SIMPLE IRAA safe harbor 401(k) skips ADP and ACP testing with a set employer match or a flat 3% contribution. How it works, what it costs, and when it beats a SIMPLE IRA.July 18, 2026
Limits & ContributionsSEP IRA Contribution Limits 2026: Why 25% Is Really 20%See the 2026 SEP IRA contribution limits, the 25% ceiling, the $72,000 cap, and why a self-employed owner's real limit is closer to 20% of net earnings.July 18, 2026
Choosing a PlanSIMPLE 401(k) Plan: How It Works and Why Almost No One Uses ItA SIMPLE 401(k) is a rarely used hybrid: 401(k) paperwork and a mandatory match, but deferrals capped low. See how a SIMPLE 401(k) vs SIMPLE IRA compares.July 18, 2026
Limits & ContributionsCan You Have a SIMPLE IRA and a Roth IRA? Yes, Here Is HowYes, you can contribute to a SIMPLE IRA and a Roth IRA in the same year. How the separate 2026 limits stack to $24,500, plus the Roth income limits to watch.July 18, 2026
Rules & ComplianceSIMPLE IRA Deadline: When to Set Up and Fund Your Plan (2026)The SIMPLE IRA deadline explained for employers: set up a new plan by October 1, send the 60-day notice, and deposit deferrals within 7 business days.July 18, 2026
Rules & ComplianceSIMPLE IRA Eligibility Rules: Who You Must CoverSIMPLE IRA eligibility rules for employers: the $5,000 two-year pay test, the 100-employee cap, which part-time workers you include, and who you can exclude.July 18, 2026
Choosing a PlanSIMPLE IRA vs. Traditional IRA: The Difference for EmployersSIMPLE IRA vs traditional IRA: compare 2026 contribution limits, the mandatory employer contribution, the early-withdrawal penalty, and who opens each account.July 18, 2026
Limits & ContributionsSpousal IRA: How a Working Spouse Funds an IRA for a Non-Working SpouseA spousal IRA lets a working spouse fund a traditional or Roth IRA for a non-working spouse on a joint return. See the 2026 $7,500 limits and the income rules.July 18, 2026
Choosing a PlanWhat Is a SEP IRA? How the Employer-Funded Plan WorksA SEP IRA, or Simplified Employee Pension, is funded entirely by the employer. Learn the SEP IRA rules, who is eligible, and how much you can put in each year.July 18, 2026
State MandatesThe CalSavers Exemption: Sponsor Your Own Plan InsteadIs CalSavers mandatory? Yes, unless you sponsor a qualified plan. CalSavers exemption rules, deadlines, and penalties, plus how a SIMPLE IRA exempts you.July 16, 2026
State MandatesCalSavers: The Downsides for Employers, and How a SIMPLE IRA Gets You ExemptCalSavers is mandatory for California employers, but registering has real drawbacks. How a SIMPLE IRA makes you exempt and how IRAPilot sets it up fast.July 16, 2026
IRS Forms & DocumentsForm 5304-SIMPLE vs. 5305-SIMPLE: Which One Do You Sign?Both IRS model forms create a SIMPLE IRA plan. The only real difference is who picks the financial institution, and neither form ever gets mailed to the IRS.July 16, 2026
IRS Forms & DocumentsIRS Publication 560, Explained in Plain EnglishPublication 560 is the IRS's annual master reference for SEP, SIMPLE, and qualified plans. What each chapter covers and who actually needs to read it.July 16, 2026
Limits & ContributionsRoth SIMPLE IRA: How After-Tax SIMPLE Contributions Work in 2026SECURE 2.0 lets SIMPLE IRA deferrals be designated Roth. How the shared $17,000 limit works, why custodian support is uneven, and how it stacks with a Roth IRA.July 16, 2026
Self-EmployedSelf-Employed IRA Contribution Limits for 2026: SEP, SIMPLE, Solo 401(k), and Personal IRAsHow much a self-employed person can put into each retirement account in 2026: SEP IRA, SIMPLE IRA, solo 401(k), and personal IRAs, and how the limits stack.July 16, 2026
Choosing a PlanSEP IRA vs. SIMPLE IRA: Which One Fits Your Business in 2026?SEP IRAs are funded entirely by the employer. SIMPLE IRAs let employees save from their paychecks with a small match. Compare contributions, costs, deadlines.July 16, 2026
Limits & ContributionsSIMPLE IRA Contribution Limits for 2026The 2026 SIMPLE IRA contribution limits: the $17,000 deferral limit, the higher limit for small employers, age 50 and ages 60 to 63 catch-ups, and match rules.July 16, 2026
Rules & ComplianceSIMPLE IRA Employer Match Rules: 3% Match vs. 2% Nonelective, Explained (2026)SIMPLE IRA employers must fund a dollar-for-dollar match up to 3% of pay or a 2% nonelective contribution for everyone. Formulas, deadlines, true-ups.July 16, 2026
Rules & ComplianceSIMPLE IRA Rollover Rules: The 2-Year Restriction and Where Your Money Can GoFor 2 years after your first contribution, a SIMPLE IRA can only move to another SIMPLE IRA. After that it can roll to a traditional IRA, 401(k), or Roth IRA.July 16, 2026
Rules & ComplianceSIMPLE IRA Rules for Employers: The Complete 2026 ChecklistEvery SIMPLE IRA rule employers must follow in 2026: the 100-employee limit, eligibility, 7-business-day deposits, the 60-day notice, and W-2 reporting.July 16, 2026
Choosing a PlanSIMPLE IRA vs. 401(k): Which Fits Your Small Business?SIMPLE IRA vs 401(k) compared for small businesses: contribution limits, employer costs, Form 5500 and testing rules, and when to convert from one to the other.July 16, 2026
Rules & ComplianceSIMPLE IRA Withdrawal Rules: Taxes, the 25% Penalty, and Every Exception (2026)SIMPLE IRA withdrawal rules: distributions are taxed as income, and the early withdrawal penalty is 25% in your first 2 years. How the 2-year rule works.July 16, 2026
Choosing a PlanBusiness 401(k) Plans vs. SIMPLE IRA, SEP, and State Programs: Cost, Limits, and Which FitsEvery retirement plan a small business can offer in 2026: 401(k), SIMPLE IRA, SEP IRA, and state auto-IRAs compared on cost, limits, fees, and tax credits.July 16, 2026
SIMPLE IRA BasicsWhat Is a SIMPLE IRA? A Plain-English Guide for EmployersA SIMPLE IRA is a retirement plan for businesses with 100 or fewer employees: pre-tax employee savings, a required employer match, no Form 5500, no testing.July 16, 2026