Everyone Saves More with a Self-Directed SIMPLE IRA
A Self-Directed SIMPLE IRA is a retirement plan designed for small business owners and their employees which allows participants to invest in alternative assets providing greater control and diversification. This type of plan is ideal for businesses with fewer than 100 employees.
What is a SIMPLE IRA?
A SIMPLE IRA (Savings Incentive Match Plan for Employees) is a retirement savings plan designed for small businesses with 100 or fewer employees. It allows both employer and employee contributions, making it a straightforward and cost-effective option for companies that want to offer retirement benefits without the complexity of larger plans like a 401(k).
Employees can contribute up to $16,000 in 2025, with an additional catch-up for older savers. Employers are generally required to either match employee contributions up to 3% of compensation or make a fixed contribution of 2% for all eligible employees, regardless of participation. The self-directed variation allows the business owner to allow for non-traditional, or alternative, assets like real estate, precious metals, cryptos and more. SIMPLE IRAs are easy to administer and offer immediate vesting, but they come with lower contribution limits compared to other retirement plans.
Why Choose IRA Financial for Your Self-Directed SIMPLE IRA?
IRA Financial offers specialized services for setting up Self-Directed SIMPLE IRAs, providing small businesses and their employees with greater control over their retirement investments. As an experienced IRA custodian and provider, we make it easy to establish and manage your plan with confidence.
No Hidden Fees
No commissions or surprise charges.
Expert Support
Live chat available 8AM–6PM Central Time.
Flexible Investing
Manage assets or have us handle them.
2,400 Investors
Serving investors in all 50 states.
Industry Expertise
Led by Self-Directed SIMPLE IRA specialists.
Dedicated Focus
100% Self-Directed SIMPLE IRA solutions.
Self-Directed SIMPLE IRA
- Ideal for businesses with less than 100 employees
- Flexible investment options
- Immediate vesting of contributions
- No annual IRA filing requirement
Checkbook Control
$999
setup fee
$495
annually
Custodian Control
$0
setup fee
$495
annually
How to Open a SIMPLE IRA
A Self-Directed SIMPLE IRA makes saving easy for you and your team. Opening an account is fast and easy.
The Benefits of a Self-Directed SIMPLE IRA
Better tax advantages
Better tax advantages
Lower your taxable income with both employer and employee contributions. A Self-Directed SIMPLE IRA lets small businesses and their teams grow tax-deferred retirement savings while reducing current tax liabilities.
Broader investment choices
Broader investment choices
Invest beyond traditional stocks and mutual funds. With a Self-Directed SIMPLE IRA, you can diversify into real estate, private placements, and other alternatives—without sacrificing contribution simplicity.
Greater earning potential
Greater earning potential
Make consistent contributions—with the added power of employer matching—to help accelerate long-term savings. SIMPLE IRAs are ideal for teams looking to build steady retirement growth without high complexity.
Direct investment control
Direct investment control
You and your employees decide how to invest—from conventional assets to alternatives. A Self-Directed SIMPLE IRA gives each account holder more freedom to manage their own retirement path.
Faster transactions
Faster transactions
Act quickly on market opportunities without brokerage lock-in. Self-Directed SIMPLE IRAs streamline access and reduce delays, perfect for businesses that value speed and flexibility.
Custodial support
Custodial support
An IRA custodian handles the logistics, while you maintain full control over investment direction. It’s an easy way for employers to offer retirement benefits without taking on administrative burden.
Built-in asset protection
Built-in asset protection
Help shield retirement savings with built-in protections and optional structuring strategies. SIMPLE IRAs offer peace of mind while empowering your team to invest more confidently.
SEP IRA vs. SIMPLE IRA vs. Solo 401(k)
| SEP IRA | SIMPLE IRA | Solo 401(k) | |
|---|---|---|---|
| Tax Advantages | Contributions are tax-deductible for the employer, and grow tax-deferred (tax-free if Roth) until withdrawal | Contributions are tax-deductible, and funds grow tax-deferred (tax-free if Roth) until withdrawal | Contributions are tax-deductible, and funds grow tax-deferred (tax-free if Roth) until withdrawal |
Eligibility | Available to any employer including self-employed individuals | Available to businesses with 100 or fewer employees who earned at least $5,000 in the previous year | Only available to owner-only businesses with no full-time employees (other than a spouse or other owners) |
Contribution Limits | Employer contributions up to 25% of compensation or $70,000, whichever is less | Up to $16,500 | Up to $70,000 |
Catch-up Contributions | None | $3,500 if you are at least age 50 or $5,250 between the ages of 60-63 | $7,500 if you are at least age 50 or $11,250 between the ages of 60-63 |
Contribution Rules | Employers must contribute the same percentage of compensation for all eligible employees | Employers are required to match employee contributions dollar-for-dollar up to 3% | Employees can contribute up to the annual limit. Employers can contribute a percentage of self-employment income. |
Withdrawal Penalties | Withdrawals before 59½ are taxed as income and incur a 10% penalty | Withdrawals before 59½ incur a 10% penalty, and withdrawals within the first 2 years incur a 25% penalty | Withdrawals before 59½ are taxed as income and incur a 10% penalty |
Rollover Options | Can be rolled over into another SEP IRA, Traditional IRA, or Roth IRA | Can be rolled over into another SIMPLE IRA, Traditional IRA, or Roth IRA after a 2-year waiting period | Solo 401(k) plans can be rolled over into an IRA, or into another 401(k) plan |
Roth Option | Yes | Yes | Yes |
Book a Consultation
Schedule a free consultation with a member of our team to explore how opening a self-directed retirement account can unlock your ability to invest tax-free in a variety of alternative assets.
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What Alternative Assets Can You Invest in with a SIMPLE IRA?
At IRA Financial, you can diversify your portfolio by investing in a wide range of alternative assets beyond traditional stocks and bonds. These include:
Real Estate
Residential, commercial, raw land, and rental properties.
Cryptocurrency
Bitcoin, Ethereum, and other digital assets.
Precious Metals
Gold, silver, and other IRS-approved metals.
Tax Liens & Deeds
Acquire property liens for potential returns.
Private Equity
Invest in startups, private companies, and venture capital.
Private Placements
Invest in a non-public company through the sale of securities.
Self-Directed SIMPLE IRA FAQs
Answers to some of the most commonly asked questions about Self-Directed SIMPLE IRAs.
Who is eligible for a SIMPLE IRA?
To participate in a SIMPLE IRA:
- Spouses and family members can also participate in the SIMPLE IRA, provided they are employees of the business.
- The business must have 100 or fewer employees who earned at least $5,000 in the previous year.
- Employees must have earned at least $5,000 in any two preceding years and expect to earn at least $5,000 in the current year.
- Employers cannot offer any other qualified retirement plan alongside a SIMPLE IRA.
Can I roll over a SIMPLE IRA into a Self-Directed IRA?
Yes, after the two-year holding period, you can roll over a SIMPLE IRA into a Self-Directed IRA without penalties.
What are the contribution limits for a SIMPLE IRA?
For 2025, you may contribute up to $16,500, which is $500 more than 2024. If you are at least age 50, you may contribute an additional $3,500. Further, if you are between the ages of 60 and 63, you may contribute a total of $21,750 with the accelerated catch-up contribution.
What are the tax penalties for early withdrawals?
Withdrawals before age 59½ are subject to a 10% penalty, plus income tax. If taken within two years of opening the account, the penalty increases to 25%.
Can I use a Self-Directed SIMPLE IRA to invest in my own business?
No, the IRS prohibits investing in a business where you or your family members have a controlling interest.
Are there required minimum distributions (RMDs)?
Yes, RMDs begin at age 73, based on the IRS life expectancy tables.
What are prohibited transactions in a Self-Directed SIMPLE IRA?
Internal Revenue Code Sections 4975 & 512 govern the prohibited transaction rules using an IRA. Essentially, your IRA cannot invest in life insurance, collectibles, or transact with a disqualified person.
How do employer contributions work?
Employers must choose between a 3% match or a 2% fixed contribution for all eligible employees. These contributions are tax-deductible.
Ready to plan for your future?
Take control of your retirement by investing in alternative assets like real estate, cryptocurrency, businesses, and more. Start creating wealth today by opening an account.
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