Retirement plans for small business

Call 800-842-2888 for information.
Get the basics

SEP or SIMPLE IRA?

SEP IRAs (Simplified Employee Pension Plan) and SIMPLE IRAs (Savings Incentive Match Plan) were created specifically for self-employed individuals or small business owners and their employees. Contributions help you and your employees get ready for retirement.
Help me choose

How SEP and SIMPLE IRAs differ

Best For
SEP IRA
Self-employed individuals or small business owners with few employees who want an IRA option with no mandatory annual contributions
SIMPLE IRA
Self-employed individuals or small business owners with 100 or fewer employees who want to allow their employees to make contributions in addition to the employer contributions
Who can contribute?
SEP IRA
Employer only
SIMPLE IRA
Employer and employees
Contribution Guidelines
SEP IRA
Employer contributions not required

Employer can contribute up to 25% of an employee’s salary or $54,000 (in 2017), whichever is less

Employers can fund an employee’s account, up to 2% of their salary, even if the employee decides not to contribute
SIMPLE IRA
Mandatory employer contributions
 
Employer can make matching contributions to their employee’s accounts, up to 3% of salary regardless of whether the employee contributes.
Eligibility
SEP IRA
Employees set up by  business owner
 
An employee must:
  • Be 21 years old
  • Have worked three of the last five years for the employer
  • Have at least $550 of compensation for the year
SIMPLE IRA
Business owner and all employees selected to participate
 
An employee must:
  • Have had compensation of at least $5000 in any of the two prior years
  • Be reasonably expected to earn $5000 in the current year
Administration
SEP IRA
No annual tax filings
SIMPLE IRA
Reduced paperwork

No annual IRA fees
Next steps

How to set up a retirement plan for your small business

Small business plans

Open a SEP IRA

This plan requires no mandatory contributions and is designed for a business with few employees.
SMALL BUSINESS PLANS

Open a SIMPLE IRA

Get started with a retirement plan for 100 or fewer employees, with required annual contributions and matching employee contributions.

Discover more

Why TIAA

Are you leaving money with an ex-employer?

You can roll the funds from a former employer’s retirement plan over to your current TIAA plan.1
Insights

Investing 101

Get familiar with investing concepts and terminology.
Prior to rolling over, consider your other options. You may also be able to leave money in your current plan, withdraw cash or roll over the assets to your new employer’s plan if one is available and rollovers are permitted. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment. Speak with a TIAA consultant and your tax advisor regarding your situation. Learn more.
 
This material is for informational or educational purposes only and does not constitute a recommendation or investment advice in connection with a distribution, transfer or rollover, a purchase or sale of securities or other investment property, or the management of securities or other investments, including the development of an investment strategy or retention of an investment manager or advisor. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made in consultation with an investor’s personal advisor based on the investor’s own objectives and circumstances.
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