Retirement plans

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.

What is an IRA?

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 salary $56,000 in 2019 or $57,000 in 2020, whichever is less.	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. Employers can fund an employee’s account, up to 2% of their salary, even if the employee decides not to contribute
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 $600 of compensation for the year	SIMPLE IRA Business owner and all employees selected to participate An employee must: Have had compensation of at least $5,000 in any of the two prior years Be reasonably expected to earn $5,000 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.

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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.

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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

EXPLORE YOUR OPTIONS

Insights

Investing 101

Get familiar with investing concepts and terminology.

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¹Prior 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 fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. 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 based on the investor’s own objectives and circumstances.

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