SIMPLE IRA — Creative Pension Design & Administration, Inc.

2026 Quick Facts

2026 Employee Limit	$17,000 (+ $4,000 catch-up if age 50+)
Employer Match	Required (up to 3% match or 2% fixed)
Business Size	100 or fewer employees

SIMPLE IRA (Savings Incentive Match Plan for Employees)

The SIMPLE IRA is designed specifically for small businesses with 100 or fewer employees. Unlike a SEP, it allows employees to contribute from their own salary on a pre-tax basis, creating a true savings-and-match partnership between employer and employee. Setup and administration costs are significantly lower than a traditional 401(k).

Key features:

Employees elect to defer salary up to $17,000 in 2026 ($21,000 if age 50+)
Employers must make one of two contribution types: a dollar-for-dollar match of up to 3% of compensation, or a flat 2% contribution for all eligible employees
All contributions vest immediately — employees own their accounts from day one
No complex non-discrimination testing required
Easy to administer and inexpensive to maintain

For small businesses that want employees to participate in their own retirement savings without the overhead of a full 401(k), the SIMPLE IRA offers an attractive middle ground. Please contact us to explore whether this plan fits your workforce and budget.