# SIMPLE IRA

> The SIMPLE IRA: who may offer it, the 2026 limits, the employer's 3% match or 2% contribution, and the October 1 deadline.

Source: https://lopifi.com/learn/startup-retirement-plans-401k-simple-ira/simple-ira-for-small-business
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is a SIMPLE IRA for small business?** The SIMPLE IRA: who may offer it, the 2026 limits, the employer's 3% match or 2% contribution, and the October 1 deadline.

A [SIMPLE IRA](https://lopifi.com/md/glossary/simple-ira) is the lightest plan there is: available to an employer with generally 100 or fewer employees, it lets employees defer up to $17,000 for 2026 into their own IRAs, and requires the employer to either match up to 3% of pay or give 2% to every eligible employee. The employer cannot have any other retirement plan, and a new plan can be made effective any day from January 1 through October 1.

> “You can set up a SIMPLE IRA plan effective on any date from January 1 through October 1 of a year.”

— [IRS — SIMPLE IRA plan](https://www.irs.gov/retirement-plans/plan-sponsor/simple-ira-plan), SIMPLE IRA plans for employers with 100 or fewer employees

**Scenario — Cheaper, and capped lower.** The same $60,000 employee deferring $3,000 gets a 3% SIMPLE match of $1,800, against $2,400 under a safe harbor 401(k).

## Where this page's rules come from

- [IRS — SIMPLE IRA plan](https://www.irs.gov/retirement-plans/plan-sponsor/simple-ira-plan) — SIMPLE IRA plans for employers with 100 or fewer employees (irs)
- [Notice 2025-67](https://www.irs.gov/pub/irs-drop/n-25-67.pdf) (PDF) — 2026 retirement plan limits (irs)
- [Wikipedia, “SIMPLE IRA”](https://en.wikipedia.org/wiki/SIMPLE_IRA) — SIMPLE IRA (reference)

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