SIMPLE IRA Contribution Calculator 2026
Estimate the 2026 SIMPLE IRA employee deferral limit and employer contribution under either the standard match formula or the 2% nonelective formula.
Last updated: April 3, 2026
Calculator
This tool models the standard 2026 SIMPLE IRA limit and the SECURE 2.0 higher applicable-plan limit. It does not fully model every multi-plan elective-deferral coordination rule, so use it as a planning tool first.
Official 2026 SIMPLE IRA numbers
- Standard salary-reduction limit: $17,000
- Higher applicable SIMPLE limit: $18,100
- Standard catch-up at age 50 or older: $4,000
- Applicable-plan age-50 catch-up used here: $3,850
- Age 60 to 63 catch-up amount: $5,250
- Compensation cap for the 2% nonelective formula: $360,000
How the calculator helps
SIMPLE IRAs are easier than many small-business retirement plans, but the 2026 rules are still not just one number. Your employee limit changes based on age, and some applicable SIMPLE plans use a different base deferral limit than the standard version.
On top of that, the employer contribution can be either a matching contribution or a 2% nonelective contribution. This calculator gives you the employee number, the employer number, and the total annual contribution estimate in one place.
Examples
Standard SIMPLE with 3% match
An employee under age 50 earns $80,000 and defers $12,000. With a 3% employer match, the employer adds $2,400 and the total contribution becomes $14,400.
Age 52 in a standard plan
A worker age 52 can generally defer up to $21,000 in a standard 2026 SIMPLE plan, made up of the $17,000 base limit plus the $4,000 catch-up amount.
Age 61 catch-up window
A worker between ages 60 and 63 can qualify for the higher 2026 catch-up amount, which is why the calculator asks for age directly.
Common mistakes
- Using the standard limit when an applicable SIMPLE plan has a different limit.
- Forgetting that the employer match is separate from the employee salary-reduction limit.
- Missing the higher catch-up amount for ages 60 to 63.
- Comparing SIMPLE IRA limits directly to SEP IRA limits without looking at how the plan works.
Related pages
FAQ
Does the employer match reduce the employee limit?
No. The employee salary-reduction limit is separate from the employer contribution formula.
Can this tool show both match and nonelective results together?
No. It shows the result for the employer formula you select so the estimate stays easy to read.
Is this enough for payroll setup?
It is a strong planning estimate, but payroll settings should still be checked against the plan document and payroll system rules.