Chapter 9: SEPs & SIMPLEs

01.Core Concepts

Employee Elective Deferrals • Maximum $16,500 (2025), plus $3,500 (2025) as catch-up contribution for those age 50 and over Employer Contributions • Employer Matching Contributions • Dollar-for-dollar match up to 3% of compensation  May be reduced under special circumstances  No more than 2 out of every 5 years  Covered compensation limit does not apply • 2% Nonelective Employer Contributions • 2% of compensation contribution to each eligible employee • Covered compensation limit applies