TIAA SEP and simple IRAs
Small business retirement plans, simplified
SEP and SIMPLE IRAs offer straightforward retirement solutions that match your workforce size, contribution goals, and administrative capacity.
What are SEP and SIMPLE IRAs?
SEP (Simplified Employee Pension) and SIMPLE (Simplified Incentive Match for Employees) IRAs are retirement plans designed for small businesses and the self-employed. These straightforward alternatives to 401(k)s offer simple setup, low maintenance, and tax advantages.
A SEP IRA is an employer-funded retirement plan that allows self-employed individuals and small business owners to make flexible, tax-deductible1 contributions for themselves and their employees based on business cash flow which grow tax-deferred.
A SIMPLE IRA is an easy-to-administer retirement plan designed for small businesses, allowing both employer and employee contributions with lower setup costs2, which may also be tax deductible1 and grow tax-deferred.
Small business retirement plans overview
Your employees deserve retirement security. And so do you.
Tax-deferred growth
SEP and SIMPLE IRA contributions are tax-deductible in the year they’re made, and all earnings grow tax-deferred until withdrawn.
A wide array of investments
SEP plans offer diverse investment options through IRA accounts, including annuities, mutual funds, pre-built risk-based portfolios, socially responsible investments, and more.
Easy administration and lower costs
Both IRAs require less paperwork and cost less than conventional retirement plans, with no annual filing requirements with the IRS.
Compare options—sep vs. simple iras
Choose the right IRA for you and your business
Compare the features and benefits of SEP and SIMPLE IRAs to build a smarter retirement plan—for you and your team.
SEP IRA
A flexible, employer-funded retirement plan designed for self-employed individuals and small business owners.
Contributions
- For 2026: Employer can contribute the lesser of 25% of compensation or $72,000
- No employee contributions
- Tax-deductible contributions
Eligibility
- Available to any business type
- Employees must be 21, have worked three of the last five years, and earned $800
Administration
- Minimal setup and maintenance
- No annual IRS filings
- Contribution due by tax-filing deadline
May be right for you if you’re self-employed or a small business owner with variable income who wants the flexibility to make high contributions when cash flow allows—without requiring employee deferrals.
SIMPLE IRA
A retirement plan for small businesses with 100 or fewer employees that allows both employer and employee contributions with required annual employer funding.
Contributions
- Employees can defer salary (up to annual IRS limits)
- Employer must match up to 3% or contribute 2% non-electively
- Tax-deferred
- Made through
TIAA Brokerage account
Eligibility
- Business must have 100 or fewer employees
- Employee must have earned $5,000 in two prior years and expect $5,000 this year
Administration
- Requires annual employee notifications
- No IRS filing, but stricter contribution rules
- Contributions made via payroll
May be right for you if you run a small business with up to 100 employees and want a straightforward, low-cost way to offer retirement benefits with employee participation.
Download application or call 800-842-2252 for assistance.
How we’re different
Get guaranteed growth and retirement checks for life3
When you open a SEP IRA with us, you’ll gain access to TIAA Traditional,* a fixed annuity that provides guaranteed growth no matter what's happening in the market. And when you're ready, you may activate lifetime income and receive retirement checks for as long as you live.
We also offer a standalone fixed annuity account that offers different features and rates. Compare your options to find the right fit for your goals.
*Issued by Teachers Insurance and Annuity Association of America (TIAA), New York, NY.
How an IRA works
How to open and invest a TIAA SEP IRA
We’ve made it easy to open an SEP IRA and can be your partner as you open your account and choose your investments. To open a SIMPLE IRA, please call us at 800-842-2252.
Apply online or over the phone
Open your SEP IRA online or give us a call at 844-TIAA-IRA (844-842-2472). We’re here Monday - Friday, 8 a.m. - 7 p.m. (ET).
Fund your SEP IRA
Make a contribution or roll over money from your previous retirement account (by direct transfer or check).4
Create a diverse portfolio
Decide how you want to invest. Choose a streamlined option, like a prebuilt portfolio, to make investing simple. Or manage your investments yourself, choosing among our annuities, mutual funds, socially responsible investments and more.
Track your progress
After you invest, see how your money may have grown and manage your investments by logging into your account.
Next steps
Ready to start?
Open a SEP IRA
Open your SEP IRA online or give us a call at 844-TIAA-IRA (844-842-2472). We’re here Monday through Friday, 8 a.m. – 7 p.m. (ET).
Roll over
Consolidate your financial life by rolling over your existing retirement account into a TIAA SEP IRA. We make it simple, with zero costs or fees.
Get feedback
Answer some simple questions about your financial situation and goals and we’ll create a personalized recommendation.
Contribute
Make a contribution to your existing SEP IRA by logging into your account.
Make investment choices
Allocate your IRA by logging into your account.
Get feedback
Answer some simple questions about your financial situation and goals and we’ll create a personalized recommendation.
faq
What people ask us
Can I withdraw money from a SEP or SIMPLE IRA?
Yes, you can withdraw money from a SEP or SIMPLE IRA at any time, but withdrawals are subject to income tax—and if you’re under 59½ years old, you may also face a 10% early withdrawal penalty (25% for early SIMPLE IRA withdrawals within the first two years).
Are SEP and SIMPLE IRA contributions tax-deductible?
Yes, SEP and SIMPLE IRA contributions are generally tax-deductible for employers, and employee contributions to a SIMPLE IRA are made pretax, reducing taxable income.
Can I make contributions to my SEP plan and an individual IRA for myself?
Yes, you can establish a SEP IRA for your business and a personal traditional or Roth IRA, subject to the limits for each. Personal traditional IRA deductibility may be limited based on income, and Roth IRA eligibility is subject to income limits. SEP IRA contributions remain tax-deductible as a business expense.
What is the difference between setting up a SIMPLE IRA over and a 401(k) plan for my company?
SIMPLE IRAs have lower start-up operating costs compared with conventional retirement plans like 401(k)s, minimal paperwork requirements, and simpler administration (for example no annual IRS filing, discrimination test, Form 5500 filing, etc.).
Can I set up a SEP or a SIMPLE IRA if I’m self-employed?
Yes. Both SEP and SIMPLE IRAs are ideal for self-employed individuals. SEP IRAs are especially popular due to their flexibility and higher contribution limits. SIMPLE IRAs can also be used, but they require consistent annual employer contributions.
IRA Resources
Keep learning with our IRA resources
IRA rollover4
Learn about IRA rollover rules, tax benefits, and how to roll over different types of workplace accounts.
Brokerage accounts
With a TIAA Brokerage account, you have the flexibility to invest for a variety of specialized goals.
How annuities benefit your IRA
A fixed annuity provides guaranteed growth and lifetime income.
We’re here to help
Give us a call at 844-TIAA IRA (844-842-2472), weekdays, 8 a.m. to 7 p.m. ET, or schedule an appointment.
This material is for informational or educational purposes only and is not fiduciary investment advice, or securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.
All guarantees are based on TIAA’s claims-paying ability. Past performance is no guarantee of future results.
TIAA Brokerage, a division of TIAA-CREF Individual & Institutional Services, LLC, Member FINRA and SIPC, distributes securities. Brokerage accounts are carried by Pershing, LLC, a subsidiary of The Bank of New York Mellon Corporation, Member FINRA, NYSE, SIPC.
1 Deductibility of IRA contributions is subject to income limitations and withdrawals prior to age 59½ are subject to ordinary income tax and a 10% penalty may apply.
2 Pertains to IRS filing and administrative costs. There is no account fee to own a TIAA SEP or SIMPLE IRA through TIAA; however, brokerage transaction fees may apply. In addition, investors are subject to the underlying funds' portfolio management fees and expenses.
3 Any guarantees under annuities issues by TIAA are subject to TIAA's claims-paying ability. Additionally, retirement check refers to the annuity income received in retirement. Guarantees of fixed monthly payments are only associated with TIAA's fixed annuities.
4 Prior to rolling over, consider your other options. You may be able to leave money in your current plan, withdraw cash or roll over the assets to a 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 at TIAA.org/reviewyouroptions.
TIAA Traditional is a fixed annuity product issued through these contracts by Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: Form series including but not limited to: 1000.24; G-1000.4; IGRS-01-84-ACC; IGRSP-01-84-ACC; 6008.8. Not all contracts are available in all states or currently issued. Annuity contracts may contain terms for keeping them in force. We can provide you with costs and complete details.
Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well.