Employer-Sponsored IRAs
Chapters in this video
- 0:00 The SIMPLE IRA penalty curveball
- 1:03 Solo Sally vs Pizza Pete: who uses what
- 1:41 SEP-IRA limits, employer-only funding, immediate vesting
- 3:49 SIMPLE IRA: the 100-employee rule and mandatory employer match
- 5:34 The 25% early-withdrawal trap and the 2-year window
- 6:37 SEP vs SIMPLE side-by-side showdown
- 7:12 Rapid-fire exam recap
What this video covers
- Who funds a SEP-IRA (employer only, no employee elective deferrals) and why that single fact powers half the SEP trap questions
- The 2026 SEP contribution math: lesser of $72,000 or 25% of compensation, with a $360,000 compensation cap
- SEP eligibility hurdles: age 21, worked 3 of the last 5 years, and at least $750 in 2026 compensation
- The SIMPLE IRA 100-employee ceiling, the $17,000 employee deferral limit, and the age 50+ and 60-63 catch-up tiers
- Why employer contributions in a SIMPLE are mandatory: either a 3% dollar-for-dollar match or a flat 2% non-elective contribution
- The 25% early-withdrawal penalty inside the first 2 years of SIMPLE participation, and why the clock starts at first participation
- Immediate 100% vesting in both plans, and the rollover restriction that a SIMPLE can only roll to another SIMPLE during the 2-year window
Read the full lesson, free
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