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Working / Accumulation Phase

Should I Establish A SEP IRA Or A SIMPLE IRA Plan For My Small Business?

Updated 12/1/2023

Your business owner clients may be searching for retirement plan options that benefit their employees and themselves, without incurring burdensome costs or administrative complexity. SEP and SIMPLE IRAs can be great alternatives to 401(k)s, each offering attributes that could be attractive, depending upon your client’s specific circumstances. Comparing these two options can be difficult, as there are multiple factors to weigh.

To help you lead your clients through a SEP vs. SIMPLE IRA analysis, we have created this flowchart. Through a series of decision points, you can collect the information necessary to guide your clients to the best decision. It covers pertinent factors, including:

  • Business owner goals and preferences
  • Size of business / employee headcount
  • Employer and employee ability to contribute
  • Contribution minimums and limits
Related Guides
Am I Eligible For A Qualified Business Income (QBI) Deduction?
Category: Working / Accumulation Phase, Tax Planning
What Issues Should I Consider When Starting A Business?
Category: Working / Accumulation Phase, Life Events
What Issues Should I Consider If I Experience A Sudden Wealth Event?
Category: General, Working / Accumulation Phase, Estate Planning, Life Events
Common Pension Plans For Small Business Owners
Category: Working / Accumulation Phase
What Issues Should I Consider As A Business Owner Or 1099 Worker?
Category: Working / Accumulation Phase, Tax Planning, Life Events
What Issues Should I Consider When Planning For The Sale, Disposition, Or Succession Of My Business?
Category: Working / Accumulation Phase, Tax Planning, Life Events

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