How much can I contribute to a SIMPLE IRA?
Last updated August 2026
Short answer
SECURE 2.0 split this plan type into two contribution ladders, which is why two different numbers circulate for the same year and both are correct.
The 2026 ladder
Standard plans: $17,000 deferral, $4,000 catch-up from 50.
Certain applicable plans: $18,100 deferral, $3,850 catch-up from 50.
At ages 60 to 63 the catch-up is $5,250 in both cases, reverting to the ordinary figure from 64.
What the employer adds
Either a dollar-for-dollar match on up to 3% of compensation, or 2% of compensation for every eligible employee regardless of whether they defer.
At $60,000 of pay, a 3% match is $1,800, and receiving it requires deferring at least that much yourself.
The choice is the employer's, made annually, and announced before the election window so employees can plan around it.
Against a 401(k)
The deferral ceiling is meaningfully lower, $17,000 against $24,500, which matters most for higher earners trying to shelter income.
The employer contribution is guaranteed rather than discretionary, which matters most for lower and middle earners who benefit from the certainty.
Total contributions at a modest salary can therefore be similar, and the gap only opens up as pay rises.
Try it in Walnut
Walnut connects to your brokerage and reads a SIMPLE IRA alongside your other accounts, so the balance is part of one picture.
One deferral limit across employers
Elective deferrals to a SIMPLE IRA, a 401(k) and a 403(b) all count toward a single annual limit for you as an individual.
Two employers cannot see each other's payroll, so tracking the combined total is entirely your responsibility.
Correcting an excess requires acting before the April deadline, and inside the two-year window the correction is more awkward than in other plans.
Deposit timing
Employee deferrals must be deposited as soon as reasonably possible, with a specific outer limit for small employers.
Employer contributions can wait until the business tax filing deadline including extensions.
Late deposits of employee money are a common compliance failure and one the Department of Labor takes seriously, so it is worth checking that payroll is actually forwarding on schedule.
What the employer contribution is worth
A 3% match on $60,000 of pay is $1,800 a year, which is a 3% guaranteed return on the amount you defer to capture it.
Under the 2% non-elective option, the money arrives whether you contribute or not, which is unusual among plan types.
Either way it is on top of your own deferral rather than inside it, so the total going in is larger than the limit alone suggests.
Sources
The 2026 deferral and catch-up figures, including the certain applicable plan amounts, are from IRS Notice 2025-67. Employer contribution requirements and deposit rules are in Publication 560. Walnut is informational and is not an investment adviser. This guide is educational and not personalized tax advice.
FAQ
How much can I contribute to a SIMPLE IRA in 2026?
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$17,000 in employee deferrals, or $18,100 in certain applicable plans under SECURE 2.0. From age 50 the catch-up is $4,000, or $3,850 in those certain applicable plans, and $5,250 at ages 60 to 63.
What is a certain applicable plan?
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A category created by SECURE 2.0 covering smaller employers, and plans where the employer makes larger contributions than the standard requirement. Those plans use the higher $18,100 deferral figure. Your plan administrator knows which applies.
Does the employer contribution count against my limit?
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No. The match or non-elective contribution sits on top of your deferral, so an employee deferring the full amount also receives the employer money in addition.
How does the limit compare to a 401(k)?
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It is lower: $17,000 against $24,500 in 2026, and the catch-up is smaller too. The trade is that the employer contribution is mandatory rather than optional, so total contributions can still be competitive at moderate salaries.
Can I also contribute to a personal IRA?
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Yes, up to $7,500 in 2026. Participation in the SIMPLE counts as workplace plan coverage for the traditional IRA deduction phase-outs, which may make that personal contribution non-deductible.
When are contributions due?
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Employee deferrals must be deposited promptly after each payroll, generally within 30 days of month end for small employers. Employer contributions are due by the business tax filing deadline including extensions.
What if I exceed the deferral limit?
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The excess must be identified and returned by the April deadline following the contribution year. Left in place, it is taxed twice, and the two-year rule can make correcting it after the fact more expensive than in other plans.
How much is the employer contribution worth?
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A 3% match on $60,000 of pay is $1,800 a year, which is effectively a 3% guaranteed return on the amount you defer to capture it. Under the 2% option the money arrives whether you contribute or not.
Can I contribute to a SIMPLE IRA and an IRA?
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Yes. The SIMPLE deferral does not use your $7,500 personal IRA allowance. Participation does count as workplace coverage for the traditional IRA deduction phase-outs, which may make that contribution non-deductible.
Which employer contribution option is better for me?
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The 2% non-elective option pays regardless of whether you defer, so it favours employees who cannot afford to contribute. The 3% match pays more to those who can, since it doubles the first 3% of pay you put in yourself.