Is a SEP or Simple IRA right for you?

Employee Contribution: Salary reduction for 2024 is $16,000 (2023 is $15,500) and for age 50 or over is $19,500 for 2024 ($19,000 for 2023).
Employer Contribution: Either matching contribution, up to 3% of employee&#39;s compensation, or non-elective contribution of 2%

	SEP IRA	Simple IRA
When should the plan be set up?	A SEP IRA can be set up any time up to the due date of the employer's return, including extensions.	A Simple IRA can be set up any time between January 1st and October 1st of the calendar year.
What is the last date for a contribution?	The SEP IRA contribution must be made by the due date of the employer's return.	The due date for a Simple IRA contribution is the following: Matching or non-elective contributions: Due date of employer's return, including extensions Salary reduction contributions: 30 days after the end of the month for which the contributions are to be made
What is the maximum contribution?	The maximum contribution for a SEP IRA is the smaller of 25% of the participant's compensation or $69,000 for 2024 ($66,000 for 2023).	A contribution to a Simple IRA is as follows: Employee Contribution: Salary reduction for 2024 is $16,000 (2023 is $15,500) and for age 50 or over is $19,500 for 2024 ($19,000 for 2023). Employer Contribution: Either matching contribution, up to 3% of employee's compensation, or non-elective contribution of 2%
What is the maximum deduction?	The maximum deduction for a SEP IRA is 25% of a participant's compensation.	The maximum deduction for a Simple IRA is the same as the maximum contribution.

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