Terms of Use

If you are self-employed or own a small business, your retirement saving options include the Simplified Employee Pension IRA (SEP-IRA) and the SIMPLE IRA (Savings Incentive Match Plan for Employees).

A SEP-IRA is a tax-advantaged plan that allows employers to contribute to their own or their employees' accounts.

As of 2026, these plans can be designated as either Traditional (pre-tax) or Roth (after-tax). While Traditional SEP-IRA earnings grow tax-deferred, Roth SEP-IRA earnings can grow tax-free. Contributions to a SEP-IRA do not prevent a participant from also contributing to a personal Traditional or Roth IRA.

A SIMPLE IRA is designed for small and growing businesses, providing a retirement program without the high administrative costs or complex government reporting of other plans.

For 2026, SIMPLE IRAs also offer Roth contribution options. Businesses with 25 or fewer employees may also qualify for increased contribution limits, making this a highly flexible option for very small firms.

For additional information about SEP-IRA and SIMPLE IRA plans, please see the related links to the Internal Revenue Service below.