SIMPLE IRA Calculator

A SIMPLE IRA has two funding sources. The employee elects to defer a share of each paycheck, up to the annual limit. For 2026 the base deferral limit is $17,000, and businesses with 25 or fewer employees automatically get a higher limit of $18,100. On top of the limit, employees aged 50 and older can add a catch-up ($4,000 for most plans, $3,850 at employers with 25 or fewer employees), and employees aged 60 through 63 can add a super catch-up of $5,250 for 2026.

The employer then adds its own contribution using one of two formulas. The 3% match is dollar-for-dollar on what the employee defers, up to 3% of their compensation, so it only costs the employer when the employee contributes. The 2% nonelective is 2% of compensation for every eligible employee, paid whether or not they defer. The calculator adds the employee deferral and the employer contribution to show the total that lands in the account for the year.

Take an employee earning $60,000 who defers 10% of pay and is under 50, at a business with more than 25 employees. Their deferral is $6,000, which is under the $17,000 limit, so the full amount goes in. Under the 3% match the employer adds 3% of $60,000, which is $1,800, because the employee deferred more than 3% of pay. The total for the year is $7,800.

If that same employee were aged 60 to 63 and wanted to max out, the deferral limit would be $17,000 plus the $5,250 super catch-up, for a $22,250 ceiling on their own contributions, with the employer contribution on top.

The employee deferral limit applies per person across all jobs, not per plan. An employee with a second job has to track combined deferrals across both employers, since neither plan sees the other. The regular age-50 catch-up is also adjusted for inflation each year, so confirm the current figure before an employee plans around it.