How does the employer match work in a SIMPLE IRA?

Employers must either match employee contributions dollar-for-dollar up to 3% of compensation, or make a 2% nonelective contribution for all eligible employees.

What's the difference between a SIMPLE IRA and a 401(k)?

A SIMPLE IRA has lower contribution limits and is designed for businesses with 100 or fewer employees. It has simpler administration and no annual Form 5500 filing requirement.

Can I roll a SIMPLE IRA into another retirement account?

Yes, but within the first two years of participation you can only roll it into another SIMPLE IRA without penalty. After two years, you can roll it into a traditional IRA or 401(k).

Is there an early withdrawal penalty on a SIMPLE IRA?

Yes — a 10% penalty applies before age 59½, which increases to 25% if you withdraw within the first two years of participation.

SIMPLE IRA Calculator

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the simple ira calculator?

In short

A SIMPLE IRA lets employees defer up to $16,000 in 2024 ($19,500 if 50+), and employers typically match up to 3% of compensation. On a $60,000 salary with a $10,000 deferral and 3% match ($1,800), the combined annual contribution is $11,800.

Calculates your total SIMPLE IRA contribution — employee deferral plus employer match — and projects your retirement balance using compound growth.

How to use this calculator

1Enter your annual salary and current age.
2Enter how much you'll defer each year (up to $16,000, or $19,500 if 50+).
3Set your employer's match rate (commonly 3% of pay).
4Choose years to retirement and expected return to see your projected balance.

The formula

Total=Ee+(salary×match%)

FV=Total×(1+r)n−1r×(1+r)

Total = Ee + (salary × match%); FV = Total × ((1+r)^n − 1) / r × (1+r)

Ee: — Employee deferral (up to $16,000 / $19,500 if 50+)
match: — Employer match = salary × match%
Total: — Annual contribution = Ee + match
r: — Annual return rate
n: — Years to retirement

Worked example

The scenario

$60,000 salary, $10,000 employee deferral, 3% employer match, 25 years, 7% return.

gives

The result

Employer match: $1,800. Total annual: $11,800. Projected balance: ~$800,000.

Common use cases

Small business employees enrolled in a SIMPLE IRA plan.
Small business owners comparing SIMPLE IRA vs SEP-IRA or Solo 401(k).
Workers estimating how an employer match boosts retirement savings.

Limitations & assumptions

Assumes constant salary and contribution rate over time.
Employer match rules vary — some use a 2% nonelective contribution instead of a 3% match.
Projection does not account for inflation or variable returns.

Frequently asked questions

Employees can defer up to $16,000 in 2024, plus a $3,500 catch-up contribution if age 50 or older (total $19,500).

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.

Your SIMPLE IRA