Dec
12
2025
Simple IRA vs. Traditional IRA

Is a SIMPLE IRA the Same as a Traditional IRA?

By | Growing Wealth, invest, Investing, Preparing for Retirement | Comments Off on Is a SIMPLE IRA the Same as a Traditional IRA?

One of the most popular retirement accounts is an IRA, or Individual Retirement Account. IRAs allow individuals to put money aside over time to save up for retirement, with tax benefits similar to those of other retirement plans.

Two common IRAs are the SIMPLE IRA and the Traditional IRA, both of which have their own benefits, downsides, and rules around who can open an account. For investors trying to decide which IRA to open, it helps to know the differences between SIMPLE IRAs and Traditional IRAs.

SIMPLE IRA vs Traditional IRA: Side-by-Side Comparison

Although there are many similarities between the two accounts, there are some key differences. This chart details the key attributes of each plan:

SIMPLE IRA Traditional IRA
Offered by employers Yes No
Who it’s for Small-business owners and their employees Individuals
Eligibility Earn at least $5,000 per year No age limit; must have earned income in the past year
Tax deferred Yes Yes
Tax deductible contributions Yes, for employers and sole proprietors only Yes
Employer contribution Required No
Fee for early withdrawal 10% plus income tax, or 25% if money is withdrawn within two years of an employer making a deposit 10% plus income tax
Contribution limits $16,500 in 2025
$17,000 in 2026		 $7,000 in 2025
$7,500 in 2026
Catch-up contribution $3,500 additional per year for people 50 and over in 2025
$4,000 additional per year for those 50 and older in 2026
$5,250 additional per year for those aged 60 to 63 in both 2025 and 2026, thanks to SECURE 2.0		 $1,000 additional per year in 2025 for people 50 and over
$1,100 additional per year in 2026 for those 50 and older

SIMPLE IRAs Explained

The SIMPLE IRA, which stands for Savings Incentive Match Plan for Employees, is set up to help small-business owners help both themselves and their employees save for retirement. It’s a retirement plan that small businesses with fewer than 100 employees can offer employees who earn at least $5,000 per year.

A SIMPLE IRA is similar to a Traditional IRA, in that a plan participant can make tax-deferred contributions to their account, so that it grows over time with compound interest. When the individual retires and begins withdrawing money, then they must pay income taxes on the funds.

With a SIMPLE IRA, both the employer and the employee contribute to the employee’s account. Employers are required to contribute in one of two ways: either by matching employee contributions up to 3% of their salary, or by contributing a flat rate of 2% of the employee’s salary, even if the employee doesn’t contribute. With the matching option, the employee must contribute money first.

There are yearly employee contribution limits to a SIMPLE IRA: In 2025, the annual limit is $16,500, with an additional $3,500 in catch-up contributions permitted for people age 50 and older, and an additional $5,250 for those ages 60 to 63, thanks to SECURE 2.0.

In 2026 the annual limit is $17,000, with an additional $4,000 in catch-up contributions permitted for people age 50 and older, and an additional $5,250 for those ages 60 to 63.

Benefits and Drawbacks of SIMPLE IRAs

It’s important to understand both the benefits and downsides of the SIMPLE IRA to make an informed decision about retirement plans.

SIMPLE IRA Benefits

There are several benefits — for both employers and employees — to choosing a SIMPLE IRA:

•   For employers, it’s easy to set up and manage, with online set-up available through most banks.

•   For employers, management costs are low compared to other retirement plans.

•   For employees, taxes on contributions are deferred until the money is withdrawn.

•   Employers can take tax deductions on contributions. Sole proprietors can deduct both salary and matching contributions.

•   For employees, there is an allowable catch-up contribution for those over 50.

•   For employers, the IRA plan providers send tax information to the IRS, so there is no need to do any reporting.

•   Employers and employees can choose how the money in the account gets invested based on what the plan offers. Options may include mutual funds aimed toward growth or income, international mutual funds, or other assets.

SIMPLE IRA Drawbacks

Although there are multiple benefits to a SIMPLE IRA, there are some downsides as well:

•   Employers must follow strict rules set by the IRS.

•   Other employer-sponsored retirement accounts have higher limits, such as the 401(k), which allows for $23,500 per year in 2025 and $24,500 in 2026. (Check out our IRA calculator to see what you can contribute to each type of IRA.)

•   If account holders withdraw money before they reach age 59 ½, they must pay a 10% fee and income taxes on the withdrawal. That penalty jumps to 25% if money is withdrawn within two years of an employer making a deposit.

•   There is no option for a Roth contribution to a SIMPLE IRA, which would allow account holders to contribute post-tax money and avoid paying taxes later.

Get a 1% IRA match on rollovers and contributions.

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What Is a Traditional IRA?

The Traditional IRA is set up by an individual to contribute to their own retirement. Employers are not involved in Traditional IRAs in any way. The main requirements to open an IRA are that the account holder must have earned some income within the past year, and they must be younger than 70 ½ years old at the end of the year.

Pros and Cons of Traditional IRAs

When it comes to benefits and downsides, there’s not too much of a difference between Traditional vs. SIMPLE IRAs, given what an IRA is. That being said, there are a few that are unique to this type of plan.

Traditional IRA Pros

Some of the upsides of a Traditional IRA include:

•   It allows for catch-up contributions for those over age 50.

•   One can choose how the money in the account gets invested based on what the plan offers. Options may include mutual funds aimed toward growth or income, international mutual funds, or other assets.

•   Contributions are tax-deferred, so taxes aren’t paid until funds are withdrawn. If you’re hoping to pay taxes now instead of later, you might weigh a Traditional vs. Roth IRA.

Traditional IRA Cons

Meanwhile, downsides to a Traditional IRA include:

•   They have much lower contribution limits than a 401(k) or a SIMPLE IRA, at $ $7,000 in 2025, and $7,500 in 2026.

•   Penalties for early withdrawal are also the same: if you withdraw money before age 59 ½, you’ll pay a 10% fee plus income taxes on the withdrawal.

Is a SIMPLE IRA or Traditional IRA Right for You?

The SIMPLE IRA and Traditional IRA are both individual retirement accounts, but the SIMPLE is set up through one’s employer — typically a small business of 100 people or less. The Traditional IRA is set up by an individual. In other words, whether a SIMPLE IRA is an option for you will depend on if you have an employer that offers it.

There are many similarities in the attributes of the plans, if you’re choosing between a SIMPLE IRA vs. Traditional IRA. However, two major distinctions are that the SIMPLE IRA requires employer contributions (though not necessarily employee contributions) and allows for a higher amount of employee contributions per year.

Can I Have Both a SIMPLE IRA and a Traditional IRA?

Yes, it is possible for an individual to have both a SIMPLE IRA through their employer and also a Traditional IRA on their own — though they may not be able to deduct all of their Traditional IRA contributions. The IRS sets a cap on deductions per calendar year.

In 2025, single people covered by an employer-sponsored retirement plan at work who have a MAGI (modified adjusted gross income) of more than $79,000 are restricted to a partial deduction; those with a MAGI of $89,000 or more may not take a deduction at all. Those with an employer-sponsored plan at work who are married filing jointly with an MAGI of more than $126,000 but less than $146,000 may take a partial deduction; those with a MAGI of $146,000 or more may not take a deduction at all.

In 2026, single people covered by an employer-sponsored retirement plan at work who have a MAGI of more than $81,000 and less than $91,000 are restricted to a partial deduction; those with a MAGI of $91,000 or more may not take a deduction at all. Those who are covered by an employer-sponsored retirement plan at work and are married filing jointly with a MAGI of more than $129,000 and less than $149,000 may take a partial deduction; those with a MAGI of $149,000 or more may not take a deduction at all.

Can You Convert a SIMPLE IRA to a Traditional IRA?

If you’re hoping to convert a SIMPLE IRA to a Traditional IRA, you’re in luck — you can roll over a SIMPLE IRA into a Traditional IRA. However, you can’t roll over the funds from a SIMPLE IRA to a Traditional IRA within the first two years of opening a SIMPLE IRA. Otherwise, you’ll get hit with a 25% penalty in addition to the regular income tax you must pay on your withdrawal.

Once that two-year period is up, however, you can roll over the money from your SIMPLE IRA — even if you’re still working for that employer. Just note that you can only roll over money from a SIMPLE IRA one time within a 12-month period.

Can You Max Out a Traditional and SIMPLE IRA the Same Year?

While you cannot max out a SIMPLE IRA and another employer-sponsored retirement plan like a 401(k), you can max out both a Traditional IRA and a SIMPLE IRA.

The maximum contribution for a SIMPLE IRA in 2025 is $16,500 (plus $3,500 in catch-up contributions), while the maximum for a Traditional IRA is $7,000 (plus $1,000 in catch-up contributions). This means that you could contribute a total of $23,500 across both plans in a year — or $28,000 if you’re 50 or older.

The maximum contribution for a SIMPLE IRA in 2026 is $17,000 (plus $4,000 in catch-up contributions), while the maximum for a Traditional IRA is $7,500 (plus $1,100 in catch-up contributions). This means that you could contribute a total of $24,500 across both plans for the year — or $29,600 if you’re 50 or older.

Are SIMPLE IRAs Most Similar to 401(k) Plans?

There are a lot of similarities between SIMPLE IRAs and 401(k) plans given that they are both employer-sponsored retirement plans. However, while any employer with one or more employees can offer a 401(k), SIMPLE IRAs are reserved for employers with 100 or fewer employees. Additionally, contribution limits are lower with SIMPLE IRAs than with 401(k) plans.

Another key difference between the two is that while employers can opt whether or not to make contributions to employee 401(k), employer contributions are mandatory with SIMPLE IRAs. On the employer side, SIMPLE IRAs generally have fewer account fees and annual tax filing requirements.

Opening an IRA With SoFi

Understanding the differences between retirement accounts like the SIMPLE and Traditional IRA is one more step in creating a personalized retirement plan that works for you and your goals. While a SIMPLE IRA is only an option if your employer offers it, you’ll want to weigh the pros and cons of a SIMPLE IRA vs. Traditional IRA if both are on the table for you. As we’ve covered, the two types of IRAs share many similarities, but a SIMPLE IRA is not the same as a Traditional IRA.

If you’re looking to start saving for retirement now, or add to your investments for the future, SoFi Invest® online retirement accounts offer both Traditional and Roth IRAs that are simple to set up and manage. By opening an IRA with SoFi, you’ll gain access to a broad range of investment options, member services, and a robust suite of planning and investment tools.

Find out how to further your retirement savings goals with SoFi Invest.

FAQ

Do you pay taxes on SIMPLE IRA?

Yes, you will pay taxes on a SIMPLE IRA, but not until you withdraw your funds in retirement. You’ll generally have to pay income tax on any amount you withdraw from your SIMPLE IRA in retirement. However, if you make a withdrawal prior to age 59 ½, or if money is withdrawn within two years of an employer making a deposit, you’ll have to pay income taxes then, alongside an additional tax penalty.

Is a SIMPLE IRA better than a Traditional IRA?

When comparing a SIMPLE IRA vs. traditional IRA, it’s important to understand that each has its pros and cons. If your employer offers a SIMPLE IRA, they require employer contributions, and they have higher contributions. At the end of the day, though, both allow you to save for retirement through tax-deferred contributions.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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2025
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4 Places To Put Your Retirement Money

By | Growing Wealth, invest, Investing, Preparing for Retirement | Comments Off on 4 Places To Put Your Retirement Money

There is no shortage of options when deciding where to put your retirement money. Strategies and tools are available to all investors, no matter where you may be in your retirement planning journey.

These options range from DIY to completely hands-off. Investors can break down their choices into three main decisions: the account, the investments, and finally the bank or platform.

Here are your options for your retirement investing strategy—and how to choose between them.

Where To Invest Retirement Money: First, Choose an Account

A typical first choice for an account to save and invest for the long-term is a designated retirement account. There are many different types of retirement plans, including Roth IRAs and employee-sponsored 401(k)s, most of which provide tax incentives to invest for the long haul.

It is important to remember, though, that retirement accounts are just that—accounts. For example, a 401(k) and a Roth IRA are not investments but instead, accounts that hold investments. Said another way, they provide a place where you can invest, but are not themselves an investment. This can be confusing, as many workplace retirement plans also automatically invest contributions made to the account.

Therefore, the decision on which retirement account to use will largely depend on what makes the most sense for your personal tax situation, and which you have access to. Here are some common options.

1. Workplace Retirement Plan

For individuals with access to one, a workplace retirement plan can be a convenient option that offers the benefit of automatic paycheck deduction. Many workplace plans, such as 401(k), 403(b), and SIMPLE (Savings Incentive Match Plan for Employees) IRA accounts, provide an easy place where retirement saving and investing can happen automatically.

As a bonus, many workplace plans offer a company match: when you contribute to your account, they do too. Many investors think of a company match as additional salary or “free money” that will help them reach their goals.

2. Tax-deferred Retirement Account

Tax-deferred retirement accounts, which include traditional IRAs, 401(k)s, and solo 401(k)s and SEP IRAs, offer tax deferral—meaning that you contribute with pre-tax dollars. When you open an IRA (or other similar account), income taxes on all contributions are deferred until you withdraw money, usually in retirement.

One benefit of tax deferral is that an individual might be more likely to have a lower (effective) income tax rate as a retired person, so there may be an advantage to delay taxes.

Get a 1% IRA match on rollovers and contributions.

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1

1Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

3. Roth IRA

Neither a Roth IRA or a Roth 401(k) offer tax deferral, so money entering into the account will be subject to income taxes. But that means that the money can be withdrawn tax-free, upon retirement or at other qualified times.

A Roth IRA could be a compelling option for someone looking to supplement their existing workplace plan, or someone who may not have access to an account through work. That said, Roth IRA accounts have income limitations, meaning that a high salary may disqualify you from using one.

There is one universal benefit to using a retirement account—as opposed to a non-retirement investment account—whether it’s tax-deferred or not: Tax-free investment growth. In a non-retirement account, money earned through investing will be subject to an additional tax on investment earnings. Within a retirement account, there is no such tax on any money earned through investing.

4. Non-retirement investment account

Non-retirement investment accounts, such as brokerage accounts or general investing accounts, offer more flexibility in accessing your money than retirement accounts typically do. Typically, an individual can incur penalties if money is removed from their retirement account before age 59 ½. If an investor is planning to retire before this age or would like the flexibility to do so, a non-retirement investment account might be appealing.

Additionally, a non-retirement investment account isn’t subject to the annual contribution limits of a retirement plan like a 401(k) or a Roth IRA (the latter of which is $7,000 for 2025 and $7,500 for 2026 for those under age 50). Some investors may choose to max out retirement accounts and open up a taxable investment account in order to fully fund their retirement goals.

Choose an Investment Strategy

Once an investor has decided where to put retirement money, it is time for the next step, which is how to invest that money. While many workplace retirement plans automatically invest money, it should be viewed as a separate step in the process.

Typically, investors choose (at minimum) a mix of stocks and bonds within their long-term investment portfolios. When contemplating bonds vs. stocks, it’s helpful to think of the differences in this way: Stocks tend to be higher growth, but that growth comes with more risk. On the other hand, bonds have historically lower rates of growth, but are considered to be less risky. An individual may want to determine their personal mix of stocks and bonds by assessing their goals, investing timeline, and risk tolerance.

Once an investor has determined their preferred mix of stocks, bonds, and any other major asset classes (called asset allocation), it is time to determine how to fulfill these allocations. There are several options, ranging from the completely DIY (buying individual stocks, for example) to the completely uninvolved (such as having a professional manage your portfolio).

Individual Stocks

Those who have an inherent interest in picking individual stocks could certainly do so, though it is not a requisite to building an investment portfolio. As you consider if and how to choose your first stock, it also makes sense to look into whether you’re more interested in a concentrated vs. diversified investment portfolio.

Index Funds and ETFs

A common way to invest for retirement is by using mutual funds or exchange-traded funds (ETFs). These funds are, essentially, baskets that hold lots of investments. That basket could hold stocks, bonds, something else entirely, or some combination of different investment types.

Some investors may find buying big baskets of investments easier than attempting to choose individual investments, like stocks. Individuals whose retirement plan automatically invests may already have a combination of funds.

Both mutual funds and ETFs can be either actively managed or “index.” Index funds—whether mutual funds or ETFs—are a popular choice because they are low-cost and often represent a broad swath of the market. For example, it’s possible to buy a low-cost index fund that invests in the entire US stock market. With just a handful of index funds, it may be possible to build a fully diversified portfolio.

Recommended: Are Mutual Funds Good for Retirement?

Target-date Funds

Similarly, there are options that utilize a passive, index fund strategy but that build a portfolio on your behalf. First, retirement target-date funds (also called lifecycle funds) are funds that typically hold other funds (as opposed to individual stocks and bonds) in amounts that are appropriate for your investing timeline—that’s why you pick one that corresponds to your approximate retirement date.

Target-date funds are popular within workplace retirement plans, but it also may be possible to buy into one at the brokerage bank of your choosing. Be sure to check and see whether the fund consists of index funds, which are typically lower cost, or holds managed funds, which generally have higher fees.

Robo-advisor Service

Another hands-off option is to use a digital “robo-advisor” service that manages a portfolio of index funds on your behalf. This option might appeal to those who want a bit more assistance in maintaining a retirement investing strategy. Most of these services encourage a passive, long-term investment strategy.

Generally, you’ll answer questions about your goals, investing timeline, and risk tolerance, which indicates to the service your most suitable investment mix. Then, this strategy is built and maintained for you. Typically, this service comes with an additional cost on top of the cost of the funds used.

The Takeaway

For investors deciding where to put retirement money, choosing a preferred account type and an investment strategy are two ways to get started. With tax-deferred options like 401(k)s and other choices like traditional and Roth IRAs, an investor is likely to find at least one retirement plan account that suits their lifestyle and goals.

In considering possible investment strategies, it’s useful to think about how hands-on one wants to be. Putting together a stock portfolio requires more direct involvement, whereas utilizing robo-advisor services might require less.

Deciding where to invest and with what strategy will help guide an investor’s third and final decision regarding the bank or investing platform.

No matter where and how an individual decides to invest their retirement money, they’re not likely to welcome unnecessary fees. Service fees and other costs embedded in accounts can seriously erode any potential profit earned on an investment.

For investors interested in a DIY approach for retirement investments, a low-cost brokerage bank or trading platform, like SoFi Invest®, may be appealing. With SoFi Invest, members can build out a diversified investment strategy—including stocks and ETFs—without high costs.

For individuals who favor a hands-off approach, a robo-advisor could be the right fit. SoFi Automated Investing builds and maintains a diversified portfolio for investors guided by their personal money goals and smart digital algorithms. Portfolios are built using low-cost ETFs.

Find out how SoFi Invest can help you meet your retirement goals.

SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, LLC and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“SoFi Securities”).
Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above, please visit https://www.sofi.com/legal/.
Fund Fees
If you invest in Exchange Traded Funds (ETFs) through SoFi Invest (either by buying them yourself or via investing in SoFi Invest’s automated investments, formerly SoFi Wealth), these funds will have their own management fees. These fees are not paid directly by you, but rather by the fund itself. these fees do reduce the fund’s returns. Check out each fund’s prospectus for details. SoFi Invest does not receive sales commissions, 12b-1 fees, or other fees from ETFs for investing such funds on behalf of advisory clients, though if SoFi Invest creates its own funds, it could earn management fees there.
SoFi Invest may waive all, or part of any of these fees, permanently or for a period of time, at its sole discretion for any reason. Fees are subject to change at any time. The current fee schedule will always be available in your Account Documents section of SoFi Invest.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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What Is a Silver IRA? How Do They Work?

By | Growing Wealth, invest, Investing | Comments Off on What Is a Silver IRA? How Do They Work?

A silver IRA follows the basic rules of an ordinary IRA account, but it has a special designation as a self-directed IRA that allows you to invest in precious metals like silver.

It’s important to note that you don’t need to open a specific silver IRA. Instead, you set up a self-directed account with a qualified broker that specializes in precious metals or other types of alternative investments (e.g. real estate, commodities, private placements, and others).

That said, not all brokers offer self-directed IRAs. And investing in silver within an IRA may be more expensive owing to the cost of storing a physical commodity like silver.

Introduction to IRAs Invested in Precious Metals

An IRA invested in silver assets is one way to invest in precious metals. There are a few kinds of precious metal IRAs you can invest in, including a platinum IRA, a gold IRA, or a palladium IRA.

While alternative investments can be illiquid, volatile, or subject to other risk factors, investors interested in alts may be curious about the potential for greater diversification since these assets typically don’t move in tandem with conventional markets. In the case of precious metals, they can be an inflation hedge.

How a Self-Directed IRA Works

Again, it is important to note that these are not separate types of IRAs. Rather, investors interested in investing in silver or other types of alternative investments can set up what’s known as a self-directed IRA (or SIDRA) in order to choose investments that aren’t normally available through a traditional IRA account.

While the brokerage administers the SDIRA, the investor typically manages the portfolio of assets themselves. These accounts may also come with higher fees than regular IRAs owing to the higher cost of storing physical assets like silver.

That said, these accounts follow the same rules as ordinary IRAs in terms of withdrawal restrictions, income caps, taxes, and annual contribution limits (see details below). A self-directed IRA can be set up as a traditional, tax-deferred account, or a self-directed Roth IRA.

Recommended: Alternative Investments: Definition, Examples, Benefits and Risks

Get a 1% IRA match on rollovers and contributions.

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1

1Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

Establishing a Silver IRA

If you’re ready to start investing in precious metals and you’ve found a broker or IRA custodian that will allow you to open a SDIRA and purchase silver in your account, you must fund it, either by depositing cash or by transferring money from an existing 401(k) or IRA account. Then your custodian will purchase the physical silver bullion and store it for you.

Requirements for Silver Investments

When comparing a commodity vs. a security, the IRS has specific rules for investing in commodities like silver in an IRA.

One of the most important is that any physical silver bullion held in your IRA must be at least 99.9% pure. This includes coins such as the Australian Silver Kangaroo, American Silver Eagle or Canadian Maple Leaf. Make sure that you work with a reputable precious metals IRA custodian that can ensure you are only investing in approved investments.

Be sure to check that the company is registered both with FINRA (Financial Industry Regulatory Authority) as well as the SEC (Securities and Exchange Commission).

Recommended: Portfolio Diversification: What It Is and Why It’s Important

Managing a Silver IRA Portfolio

The guidelines for managing a silver IRA portfolio are similar to the rules for any other type of IRA.

When you open a silver IRA, you will issue instructions to your broker to buy and sell physical silver, just as you would if you were buying stocks in a regular IRA. The value of your silver IRA portfolio will vary according to the price of silver in the market.

You don’t hold onto or store the silver yourself while it’s an asset in your IRA. If you want to take possession of the physical assets in your silver IRA, you would need to make a withdrawal from your IRA — which is subject to standard rules governing IRA withdrawals.

An early withdrawal before age 59 ½ may result in taxes and/or penalties, so make sure you understand the terms of investing in any IRA before you take a withdrawal from a self-directed IRA.

Tax Advantages and Drawbacks of Silver IRAs

Remember that a silver IRA still follows the basic structure and tax rules of traditional and Roth IRAs. The annual contribution limit for a regular, Roth, or self-directed IRA is $7,000 for tax year 2025, or $8,000 for those 50 and older, and $7,500 for tax year 2026, or $8,600 for those 50 and older.

•   With a self-directed traditional IRA, you save pre-tax money for your retirement, similar to a traditional IRA. The assets grow tax deferred over time. You pay taxes on the money when you withdraw it, which you can do without a penalty starting at age 59 ½.

•   With a self-directed Roth IRA, similar to a regular Roth IRA, you make after-tax contributions. Your assets also grow tax free over time. And in the case of a Roth account, qualified withdrawals are tax free starting at age 59 ½, as long as you have had the account for at least five years, according to the five-year rule.

In addition, investors who want to set up a Roth SIDRA must meet certain income requirements. These are the same as the income caps on an ordinary Roth account. In 2025, in order to contribute the full amount to a Roth IRA you must earn less than $150,000 (for single filers) or $236,000 (if you’re married, filing jointly), respectively. In 2026, you must earn less than $153,000 as a single filer or $242,000 if you’re married and filing jointly. See IRS.gov for more information, or consult a tax professional.

One of the drawbacks of a silver IRA is that the assets in your IRA are intended for retirement. That means that if you withdraw the money in any IRA before you reach 59 ½, you may have to pay additional taxes and/or a 10% penalty.

The Takeaway

A silver IRA is a common name for a self-directed IRA that invests in and holds physical silver bullion. You can open either a traditional silver IRA or a Roth silver IRA, each of which comes with its own tax advantages.

Only certain brokerages support investing in silver in a self-directed IRA, so make sure that you have found a reputable company that offers this option. It’s also important to know that the IRS has certain regulations about investing in a silver IRA, such as a requirement that any silver be at last 99.9% pure.

Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

What types of silver investments are eligible for a silver IRA?

If you are looking to invest in gold, silver or other precious metals, it’s important to understand that there are certain IRS requirements and regulations for the types of silver you can hold in an IRA. Only silver that is 99.9% pure is allowed to be held in a Silver IRA. This includes popular coins such as the Canadian Maple Leaf, Australian Silver Kangaroo, or American Silver Eagle.

How does the process of establishing and funding a silver IRA work?

The first step in opening up a silver IRA is to find an IRA custodian that allows you to self-direct (or manage) your investments. Once you’ve opened a self-directed IRA at a brokerage that supports it, you can deposit money or transfer it from an existing 401(k) account or IRA. Your custodian will then purchase the silver bullion based on your instructions.

What are the potential tax advantages and drawbacks of a silver IRA?

The tax advantages of a silver IRA depend on whether it is structured as a traditional or Roth self-directed IRA. With a traditional IRA, you may be eligible for a tax deduction in the year that you make your contributions. With a Roth IRA, you pay tax on your contributions in the year you make them, but you don’t pay capital gains on withdrawals; qualified withdrawals are tax free.

One potential drawback is that, in most circumstances, you will have to pay additional taxes and/or penalties if you withdraw money from your IRA before you reach retirement age.

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For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Guide to IRA Contribution Deadlines

By | invest, Investing, Preparing for Retirement | Comments Off on Guide to IRA Contribution Deadlines

Fortunately for retirement savers, the IRS allows some flexibility in funding traditional or Roth IRAs. You have until tax day of the following year to make contributions.

In other words: Your last day to make an IRA contribution for tax year 2025 is April 15, 2026. If you file an extension on your return, your ability to contribute to an IRA is not extended, however.

Knowing how long you have to make an IRA contribution is important, as it can help you save a little more, and potentially reap some tax benefits.

What Is the IRA Contribution Deadline?

A conventional tax year extends from January 1 of the year through December 31 (corporate tax years can be different). However, the deadline for individuals making the maximum annual IRA contribution doesn’t follow that timeline; generally you have until tax day in April of the following year.

In most years, the deadline for filing your tax return is April 15. However, if the 15th falls on a holiday or weekend, the deadline is generally pushed to the next business day.

The deadline also applies to both annual contributions and catch-up contributions for regular IRAs. A catch-up contribution of $1,000 is allowed for taxpayers aged 50 or older.

Again, if you file an extension on your tax return, that will not give you extra time to contribute to an ordinary IRA. That said, the rules related to contribution deadlines and extensions are somewhat different for other types of IRAs, like SEP and SIMPLE IRAs designed for those who are self-employed or own small businesses. (see below).

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1Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

Traditional, Roth, SEP, and SIMPLE IRA Contribution Deadlines for 2025

Contributions limits and deadlines vary, depending on the type of IRA you have.

IRA Type

 2024 Annual Contribution Limit

 Contribution Deadline for the 2025 Tax Year
Traditional IRA $7,000, or $8,000 if you’re 50 or older April 15, 2026
Roth IRA $7,000, or $8,000 if you’re 50 or older April 15, 2026
SEP IRA 25% of compensation or $70,000, whichever is less (SEP plans do not have catch-up provisions) April 15, 2026, unless the employer filed an extension; the extension deadline is Oct. 15, 2026
SIMPLE IRA Basic limit is $16,500; $20,000 if you’re 50 to 59 or age 64 and older, and $21,750 if your age 60 to 63 January 30, 2026 for employee contributions; April 15, 2026 for employer contributions (or Oct. 15, 2026, if there’s an extension)

How IRA Contributions Work

Contributions refer to the funds you deposit in a retirement account like an IRA (but also a 401(k) or 403(b)). Most retirement accounts have rules that govern the maximum amount you can contribute per year and the tax implications for contributing to one type of account vs. another.

•   Generally speaking, traditional IRAs, as well as SEP and SIMPLE IRAs, are considered tax-deferred accounts. That means your contributions are typically tax deductible in the year you make them (though some restrictions apply if you or your spouse is covered by a workplace retirement account). But you will owe taxes on withdrawals.

•   The money you contribute to a Roth IRA is an after-tax contribution, and is not tax deductible. Qualified withdrawals after age 59 ½ are tax-free, however.

Roth accounts have more restrictions than other types of IRAs. One important distinction is the income cap: For tax year 2025: Single filers whose modified adjusted gross income (MAGI) is $165,000 or higher, and those who are married, filing jointly with a MAGI of $246,000 or higher, are not eligible to open a Roth IRA.

Other Types of IRAs

In addition to the ordinary traditional and Roth IRA options, self-employed people, sole proprietors, and those with small businesses can set up SEP or SIMPLE IRAs.

•   A SEP IRA, or Simplified Employee Pension IRA, is a retirement plan that can be set up by employers, sole proprietors, or the self-employed. Employers make contributions for employees (employees don’t contribute). Employers are not required to contribute to a SEP every year.

•   A SIMPLE IRA, or Savings Incentive Match Plan for Employees IRA, is similar to a 401(k) but for businesses with 100 or employees or less. Both the employer and the employees can contribute to a SIMPLE IRA.

Both SEP and SIMPLE IRAs are tax-deferred accounts, similar to a traditional IRA. Contributions in most cases are tax deductible, but the account holder must pay ordinary income tax on withdrawals. The rules and restrictions governing withdrawals vary, so you may want to check the details at IRS.gov or consult a tax professional.

Pros and Cons of Maxing Out Your IRA Early or Late

Maxing out your IRA, i.e., making the full annual contribution allowed, could help you save more for retirement. And as with any contribution amount, there can be tax benefits depending on the type of IRA you’re funding.

Whether it makes sense to contribute earlier in the year or wait until the contribution deadline depends on your financial situation.

Here are some of the advantages and disadvantages of maxing out an IRA earlier vs. later.

Maxing Out an IRA Early

 Maxing Out an IRA Late
Pros

•  Maxing out your plan sooner allows it more time to grow, potentially. Growth depends on the investments you choose for your IRA; there are no guarantees of returns and there is always a risk of loss.

•  If your financial situation changes you’ll have the reassurance of knowing that your plan is fully funded for the year.

•  Waiting to max out your IRA until tax day could give you more time to max out your 401(k) before the year-end contribution deadline.

•  If you have a Roth IRA, waiting to make contributions can help you better gauge the maximum amount you can save, based on your income.

Cons

•  Fully funding an IRA early in the year could leave you short financially if you need money for other goals.

•  There’s a risk of contributing too much to a Roth IRA, based on what your income and filing status allows, which could trigger a tax penalty.

•  Delaying contributions might mean missing out on potential growth (but there are no guarantees your money will grow).

•  Waiting too long could result in missing the annual contribution deadline altogether if you come up short and don’t have enough money to save.

What If You Contribute Too Much to Your IRA?

If you contribute too much money to your IRA, the IRS can treat it as an excess contribution. Excess IRA contributions can happen if you:

•   Aren’t keeping track of contributions throughout the year

•   Miscalculate the amount you can contribute to a Roth IRA, based on your income and filing status

•   Make an improper rollover contribution

If you make excess IRA contributions, the IRS can apply a 6% penalty for each year the excess amounts remain in your account. You can avoid the 6% tax by withdrawing excess contributions and any earnings from those contributions by the tax filing deadline or extension deadline if you filed one.

The Takeaway

If you have any type of IRA, it’s important to mark your calendar each year with the contribution deadline so that you can plan the cadence of your contributions in relation to other expenses. Because most types of IRAs allow additional time for contributions, this can help you save more — and possibly reap additional tax benefits.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Help grow your nest egg with a SoFi IRA.

FAQ

What is the last day to contribute to an IRA for tax year 2025?

The traditional and Roth IRA contribution deadline for the 2025 tax year is April 15, 2026. If you’re an employer, or self-employed individual contributing to an SEP IRA, you’d have until tax day to contribute, unless you filed a tax extension. In that case, you’d be able to use the extension deadline instead.

Can I contribute to an IRA after December 31?

Yes, you can contribute to an IRA for the current tax year up until the federal tax deadline, which is typically April 15 of the following year. In years where the federal tax deadline falls on a holiday or weekend, the date is pushed up to the next business day.

Can I open an IRA in 2026, but contribute for 2025?

Yes, you can open a new IRA in 2026 and still make a contribution for the 2025 tax year. However, you must both open the account and fund it with your 2025 contribution by the April 15, 2026 tax deadline. Contributions made after April 15, 2026, can only be for the 2026 tax year and must be made by the tax deadline in 2027.

About the author

Rebecca Lake

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.


Photo credit: iStock/MicroStockHub

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

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SEP IRA vs SIMPLE IRA: Differences & Pros and Cons

By | Growing Wealth, invest, Investing, Preparing for Retirement | Comments Off on SEP IRA vs SIMPLE IRA: Differences & Pros and Cons

One of the most common retirement plans is an IRA, or individual retirement account, which allows individuals to contribute and save money for retirement over time. The money can be withdrawn during retirement to cover living expenses and other costs.

There are several different types of IRAs. Two of the most popular types are the Roth IRA and the Traditional IRA.

Perhaps less well-known are the SEP IRA and the SIMPLE IRA. These IRAs are designed for business owners, sole proprietors, and the self-employed.

For small business owners who would like to offer their employees — and themselves — a retirement savings plan, a SEP IRA and a Simple IRA can be options to explore. According to a 2023 study by Fidelity, only 34% of small business owners offer their employees a retirement plan. This is because they believe they can’t afford to do so (48%), are too busy running their company to do it (22%), or don’t know how to start (21%). SEP or Simple IRAs are generally easy to set up and manage and have lower fees than other types of accounts.

There are a number of similarities and differences between the SEP IRA vs. the SIMPLE IRA. Exploring the pros and cons of each and comparing the two plans can help self-employed people, small business owners, and also employees make informed decisions about retirement savings.

How SEP IRAs Work

A SEP IRA, or Simplified Employee Pension IRA, is a retirement plan set up by employers, sole proprietors, and the self-employed. Although SEP IRAs can be used by any size business, they are geared towards sole proprietors and small business owners. SEP IRAs are typically easy to set up and have lower management fees than other types of retirement accounts.

Employers make contributions to the plan for their employees. They are not required to contribute to a SEP every year. This flexibility can be beneficial for businesses with fluctuating income because the employer can decide when and how much to contribute to the account.

Employers can contribute up to 25% of an employee’s annual salary or $70,000 in 2025, whichever is less. In 2026, employers can contribute up to $72,000 or 25% of an employee’s salary, whichever is less. The employer and all employees must receive the same rate of contribution.

Employees cannot make contributions to their SEP accounts.

💡 Quick Tip: All investments come with some degree of risk — and some are riskier than others. Before investing online, decide on your investment goals and how much risk you want to take.

SEP IRA Pros and Cons

There are advantages to a SEP IRA, but there are disadvantages as well. Here are some of the main benefits and drawbacks to be aware of.

Pros

The pros of a SEP IRA include:

•   A SEP IRA is an easy way for a small business owner or self-employed individual to set up a retirement plan.

•   The contribution limit is higher than that for a SIMPLE IRA. In 2025, the contribution limit is $70,000 to a SEP IRA, and in 2026, the contribution limit is $72,000.

•   Employers can deduct contributions to the account from their taxes up to certain amounts, and employees don’t have to include the contributions in their gross income. The money in the account is tax-deferred, and employees don’t pay taxes on the money until it gets withdrawn.

•   For self-employed individuals, a SEP IRA may help reduce certain taxes, such as self-employment tax.

•   An employer isn’t required to make contributions to a SEP IRA every year. This can be helpful if their business has a bad year, for example.

•   For employees, the money in a SEP is immediately 100% vested, and each employee manages their own assets and investments.

•   Having a SEP IRA does not restrict an individual from having other types of IRAs.

Get a 1% IRA match on rollovers and contributions.

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1

1Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

Cons

There are some drawbacks to a SEP IRA for employees and employers. These include:

•   Employees are not able to make contributions to their own SEP accounts.

•   Individuals cannot choose to pay taxes on the contributions in their SEP now, even if they’d like to.

•   Employers must contribute the same percentage to all employees’ SEP accounts that they contribute to their own account.

•   There are no catch-up contributions for those 50 and older.

How SIMPLE IRAs Work

SIMPLE IRAs, or Savings Incentive Match Plan for Employees Individual Retirement Accounts, are set up for businesses with 100 or fewer employees. Unlike the SEP IRA, both the employer and the employees can contribute to a SIMPLE IRA.

Any employee who earns more than $5,000 per year (and has done so for any two- year period prior to the current year) is eligible to participate in a SIMPLE IRA plan. Employees contribute pre-tax dollars to their plan — and they may have the funds automatically deducted from their paychecks.

Employers are required to contribute to employee SIMPLE IRAs, and they may do so in one of two ways. They can either match employee contributions up to 3% of the employee’s annual salary, or they can make non-elective contributions whether the employee contributes or not. If they choose the second option, the employer must contribute a flat rate of 2% of the employee’s salary up to a limit of $350,000 in 2025, and up to a limit of $360,000 in 2026.

Both employer contributions and employee salary deferral contributions are tax-deductible.

As of 2025, the annual contribution limit to SIMPLE IRAs is $16,500. Workers age 50 and up can contribute an additional $3,500. In 2026, the annual contribution limit is $17,000, and workers age 50 and up can contribute an additional $4,000.

SIMPLE IRA Pros and Cons

There are benefits and drawbacks to a SIMPLE IRA.

Pros

These are some of the pros of a SIMPLE IRA:

•   A SIMPLE IRA is a way to save for retirement for yourself and your employees. And the plan is typically easy to set up.

•   Both employees and employers can make contributions.

•   Money contributed to a SIMPLE IRA may grow tax-deferred until an individual withdraws it in retirement.

•   For employees, SIMPLE IRA contributions can be deducted directly from their paychecks.

•   Employers can choose one of two ways to contribute to employees’ plans — by either matching employee contributions up to 3% of the employee’s annual salary, or making non-elective contributions of 2% of the employee’s salary up to an annual compensation limit.

•   Employees are immediately 100% vested in the SIMPLE IRA plan.

•   A SIMPLE IRA has higher contribution limits compared to a traditional or Roth IRA.

•   Catch-up contributions are allowed for those 50 and up.

Cons

SIMPLE IRAs also have some drawbacks, including:

•   A SIMPLE IRA is only for companies with 100 employees or fewer.

•   Employers are required to fund employees’ accounts.

•   The SIMPLE IRA contribution limit ($16,500 in 2025, and $17,000 in 2026) is much lower than the SEP IRA contribution limit ($70,000 in 2025, and $72,000 in 2026).

Main Differences Between SEP and Simple IRAs

While SEP IRAs and SIMPLE IRAs share many similarities, there are some important differences between them that both employers and employees should be aware of.

Eligibility

On the employer side, a business of any size is eligible for a SEP IRA. However, SIMPLE IRAs are for businesses with no more than 100 employees.

For employees to be eligible to participate in a SIMPLE IRA, they must earn $5,000 or more annually and have done so for at least two years previously. To be eligible for a SEP IRA, an employee must have worked for the employer for at least three of the last five years and earned at least $750.

Who Can Contribute

Only employers may contribute to a SEP IRA. Employees cannot contribute to this plan.

Both employers and employees can contribute to a SIMPLE IRA. Employers are required to contribute to their employees’ plans.

Contribution limits

Employers are required to contribute to employee SIMPLE IRAs either by matching employee contributions up to 3% of the employee’s annual salary, or making non-elective contributions of 2% of the employee’s salary up to a limit of $350,000 in 2025, and up to a limit of $360,000 in 2026.

With a SEP IRA, employers can contribute up to 25% of an employee’s annual salary or $70,000 in 2025, whichever is less. In 2026, an employer can contribute up to 25% of an employee’s annual salary or $72,000, whiever is less. A business owner and all employees must receive the same rate of contribution. Employers are not required to contribute to A SEP plan every year.

Taxes

For both SEP IRAS and SIMPLE IRAs, contributions are tax deductible. Individuals typically pay taxes on the money when they withdraw it from the plan.

Vesting

All participants in SIMPLE IRAs and SEP IRAS are immediately 100% vested in the plan.

Paycheck Deductions

Employees contributing to a SIMPLE IRA can have their contributions automatically deducted from their paychecks.

Employees cannot contribute to a SEP IRA, thus there are no paycheck deductions.

Withdrawals

For both SEP IRAs and SIMPLE IRAS, participants may withdraw the money penalty-free at age 59 ½ . Withdrawals are taxable in the year they are taken.

If an individual makes an early withdrawal from a SEP IRA or a SIMPLE IRA, they will generally be subject to a 10% penalty. For a SIMPLE IRA, if the withdrawal is taken within the first two years of participation in the plan, the penalty is raised to 25%.

SEP IRAs may be rolled over into other IRAs or certain other retirement plans without penalty. SIMPLE IRAs are eligible for rollovers into other IRAs without penalty after two years of participation in the plan. Before then, they may only be rolled over into another SIMPLE IRA.

Here’s an at-a-glance comparison of a SEP IRA vs. SIMPLE IRA:

SEP IRA

 SIMPLE IRA
Eligibility Businesses of any size

Employee must have worked for the employer for at least three of the last five years and earn at least $750 annually

 Business must have no more than than 100 employees

Employees must earn $5,000 or more per year and have done so for two years prior to the current year
Who can contribute Employers only Employers and employees (employers are required to contribute to their employees’ plans)
Contribution limits Employers can contribute up to 25% of an employee’s annual salary or $70,000 in 2025, and up to $72,000 in 2026, whichever is less

No catch-up contributions

 $16,500 per year in 2025, and $17,000 in 2026

Catch-up contributions of $3,500 for those 50 and up in 2025 and $4,000 for those 50 and up in 2026
Taxes Contributions are tax deductible. Taxes are paid when the money is withdrawn Contributions are tax deductible. Taxes are paid when the money is withdrawn
Vesting 100% immediate vesting 100% immediate vesting
Paycheck deductions No (employees cannot contribute to the plan) Yes
Withdrawals Money can be withdrawn without penalty at age 59 ½. There is generally a 10% penalty if money is withdrawn early, before age 59 ½ Money can be withdrawn without penalty at age 59 ½. There is generally a 10% penalty if money is withdrawn early, before age 59 ½ (or 25% if the account has been open for less than 2 years)

The Takeaway

Both the SEP IRA and the SIMPLE IRA were created to help small business owners and their employees save for retirement. Each account may benefit employers and employees in different ways.

With the SEP IRA, the employer (including a self-employed person) contributes to the plan. They are not required to contribute every year. With the SIMPLE IRA, the employer is required to contribute, and the employee may contribute but can choose not to.

In addition to these plans, there are other ways to save for retirement. For instance, individuals can contribute to their own personal retirement plans, such as a traditional or Roth IRA, to help save money for their golden years. Just be sure to be aware of the contribution limits.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Easily manage your retirement savings with a SoFi IRA.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

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