What is the simple ira calculator?
In short
A SIMPLE IRA lets employees defer up to $17,000 in 2026 ($21,000 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 $17,000 in 2026, or $21,000 if 50+; ages 60–63 get a higher $22,250 super catch-up limit).
- 3Set your employer's match rate (commonly 3% of pay).
- 4Choose years to retirement and expected return to see your projected balance.
The formula
- Ee
- — Employee deferral (up to $17,000 in 2026 / $21,000 if 50+)
- match
- — Employer match = min(salary × match%, Ee) — capped at your own deferral
- 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.
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.
- The dollar-for-dollar match cannot exceed your own deferral (IRC §408(p)) — the calculator caps it accordingly.
- Does not model the SECURE 2.0 higher-limit tier for employees of small employers (25 or fewer, or 26–100 electing): $18,100 deferral with a $3,850 catch-up in 2026 — note that catch-up is actually below the regular $4,000.
- Projection does not account for inflation or variable returns.
Frequently asked questions
What is the SIMPLE IRA contribution limit for 2026?
Is there a higher SIMPLE IRA limit for small employers?
How does the employer match work in a SIMPLE IRA?
What's the difference between a SIMPLE IRA and a 401(k)?
Can I roll a SIMPLE IRA into another retirement account?
Is there an early withdrawal penalty on a SIMPLE IRA?
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.