10 Best SIMPLE IRA Providers for Small Business

Retirement benefits can be a powerful tool for attracting and retaining great employees—but finding the right plan as a small business owner can feel overwhelming. If you’re searching for a straightforward, cost-effective way to offer retirement savings, a SIMPLE IRA may be your answer. Designed specifically for businesses with 100 or fewer employees, SIMPLE IRAs allow both employer and employee contributions, offer tax advantages, and require less administrative heavy lifting than traditional 401(k) plans.

But not all SIMPLE IRA providers are created equal. From setup fees and investment choices to payroll integration and compliance support, the details matter—and the wrong provider can create unnecessary headaches and expenses. That’s why we’ve analyzed the top players in the market, comparing costs, setup processes, investment options, and ongoing support to help you find the best fit for your business.

In this guide, you’ll discover the essential factors to consider when evaluating SIMPLE IRA providers, along with in-depth reviews of the ten leading options for small businesses. Whether you’re focused on minimizing fees, maximizing investment flexibility, or ensuring effortless ERISA compliance, you’ll gain the clarity needed to move forward with confidence.

Understanding SIMPLE IRAs: What Small Business Owners Need to Know

Before you dive into provider comparisons, it helps to get a firm grasp on what a SIMPLE IRA is and why it might be the right retirement vehicle for your company. A SIMPLE IRA—short for Savings Incentive Match Plan for Employees IRA—is designed to make retirement savings easy for smaller organizations. Unlike a 401(k), which demands annual nondiscrimination testing and complex plan documents, a SIMPLE IRA simplifies administration: there’s no Form 5500 filing for most plans, and contributions go into individual IRAs that employees control. Compared with a SEP IRA, where only the employer contributes, a SIMPLE IRA lets both employees and employers chip in, offering a mix of pre-tax salary deferrals and mandatory employer contributions.

Tax-deferred growth means contributions and earnings aren’t taxed until withdrawn, helping your team’s nest eggs compound faster. On the employer side, you choose between matching employee deferrals dollar-for-dollar up to 3% of compensation or making a nonelective contribution equal to 2% of each eligible employee’s pay. That requirement ensures your workforce receives a reliable base of retirement funding without the administrative burden of profit-sharing formulas.

Imagine you run a 10-person tech startup that added its first full-time hire last year. Managing a 401(k) feels beyond your bandwidth, but you still want to reward employees and lower your tax bill. You select a SIMPLE IRA—by mid-year, each team member opens an IRA account, you coordinate payroll deferrals, and you either match contributions or set aside 2% of wages for everyone. Within weeks, the plan is live without complex testing or extra tax filings.

What is a SIMPLE IRA?

A SIMPLE IRA is an employer-sponsored plan that marries simplicity with flexibility. Key distinctions:

• 401(k) vs. SIMPLE IRA: 401(k)s require annual compliance testing (ADP/ACP), Form 5500, and often higher administrative fees. SIMPLE IRAs bypass testing and have lighter paperwork.
• SEP IRA vs. SIMPLE IRA: SEP IRAs allow only employer contributions, up to 25% of compensation. SIMPLE IRAs permit employee salary deferrals plus required employer contributions.
• Tax benefits: Employee contributions and employer contributions are tax-deductible. Investments grow tax-deferred until distribution.

Who is Eligible to Offer a SIMPLE IRA?

Not every business can jump into a SIMPLE IRA, but many structures qualify:

• Employee count: You must have 100 or fewer employees who earned $5,000 or more in the prior calendar year.
• Compensation rule: Anyone (regardless of job title) who earned at least $5,000 in any two preceding years and is expected to hit $5,000 this year must be eligible.
• Business type: Corporations, partnerships, LLCs, sole proprietorships and tax-exempt organizations can all set up a SIMPLE IRA. Yes, an LLC can adopt a SIMPLE IRA just like any other entity.
• Size considerations: If you exceed the 100-employee limit, you can maintain the plan for two years before needing to convert to another retirement vehicle.

In short, as long as you stay within the 100-employee and $5,000 compensation thresholds, a SIMPLE IRA remains in your toolkit.

Contribution Limits and Employer Requirements

When planning your budget, you need to know the IRS-defined contribution caps and the choices you must offer each year:

• Employee deferrals: Participants can defer up to the annual limit on a pre-tax basis.
• Catch-up contributions: Anyone age 50 or older can add extra “catch-up” deferrals.
• Employer contributions: You choose one of two formulas:
  1. A dollar-for-dollar match up to 3% of compensation (with a 1% floor in at least two out of every five years).
  2. A flat 2% nonelective contribution for each eligible employee.

For quick reference, see the 2024 vs. 2025 deferral limits and catch-up amounts:

Category	2024 Limit	2025 Limit
Employee salary deferral	$15,500	$16,500
Catch-up (age 50+)	$3,500	$3,500
Higher deferral (≤25 employees)¹	$17,000	$17,600
Higher catch-up (age 60–63)²	N/A	$5,250

¹ Employers with 25 or fewer employees who each earned $5,000+ in the previous year must allow the higher deferral limits.
² Under SECURE 2.0, participants aged 60–63 can take a larger catch-up in 2025.

For full details on contribution limits and IRS guidelines, see the official IRS resource: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-simple-ira-contribution-limits.

Key Factors to Consider When Selecting a SIMPLE IRA Provider

Choosing the right SIMPLE IRA provider means balancing competitive pricing with robust features and compliance support. Below are the four critical areas to weigh as you compare providers.

Costs and Fees

Even modest fees can erode retirement savings over time, so it pays to understand the full cost picture:

• Per-participant fees: Commonly range from $30–$60 per employee per year.
• Fund expense ratios: Low-cost index funds might charge 0.05%, while actively managed funds often run 0.50%–1.00%.
• Transaction charges: Trades of non-NTF (no-transaction-fee) investments can incur commissions.
• Hidden and ancillary fees: Watch for payroll integration fees, compliance testing charges, or plan termination costs.

Example: A 20-employee company with a $50 annual per-participant fee and average fund costs of 0.20% on $1,000 deferrals per person would see roughly $1,000 in administrative fees plus $40 in fund expenses—totaling $1,040 before any trading or setup charges.

Investment Options and Flexibility

The right lineup empowers employees without overcomplicating your role as sponsor:

• Mutual funds versus ETFs: ETFs often boast lower expense ratios; no-load mutual funds can simplify model portfolios.
• Brokerage window: Some platforms allow self-directed trading, while others restrict participants to pre-selected investments.
• Managed account choices: Providers offering 3(38) services handle asset allocation and ongoing fund monitoring.
• Specialty offerings: Sustainable or target-date funds and alternative investments may appeal to diverse workforces.

A broad menu lets employees tailor goals, but a more focused selection can streamline recordkeeping and reduce fiduciary risk.

Setup Process and Ongoing Administration

Smooth implementation and low-stress maintenance come down to technology and support:

• Document generation: Automated Adoption Agreements, Summary Plan Descriptions, and annual notices save hours of paperwork.
• Enrollment communications: Customizable notices and electronic delivery options accelerate employee outreach.
• Payroll integration: Seamless connectivity with your payroll system or vendor ensures accurate, timely deferrals and employer contributions.
• Compliance filings: Look for assistance creating Form 5500 (if required) and adhering to DOL notice rules.

A typical “How to set up a SIMPLE IRA for small business” flow looks like this:

1. Execute a written Adoption Agreement.
2. Deliver required notices and summaries to eligible employees.
3. Open individual IRA accounts for participants.
4. Coordinate with payroll to begin deferrals and employer contributions.

Efficient tools and clear workflows eliminate bottlenecks at launch and throughout the plan year.

Fiduciary Compliance and Support

ERISA holds plan sponsors to exacting standards—but the right partner can help shoulder the load:

• 3(16) plan administration: Delegating SPD delivery, Form 5500 preparation, and contribution remittance oversight reduces your exposure.
• 3(38) investment management: Outsource fund selection and ongoing monitoring to professionals, shifting fiduciary liability.
• ERISA guidance: Expert help on prohibited transactions, deposit timing, and annual notice requirements keeps you in compliance.
• Department of Labor resources: Top providers align with the DOL’s fiduciary guide, ensuring you understand and meet your obligations.

When you choose a provider with comprehensive fiduciary services, you minimize risk and free up time to focus on growing your business.

Charles Schwab: Robust Low-Cost SIMPLE IRA Plans

Overview

Charles Schwab’s SIMPLE IRA offering combines an industry-leading brokerage platform with straightforward plan features designed for smaller organizations. Schwab has built its reputation on low costs and powerful tools, and its SIMPLE IRA reflects that heritage. With zero setup fees and an easy-to-navigate online portal, Schwab lets businesses focus on their core operations while providing employees a reliable retirement vehicle.

Thanks to Schwab’s scale, you’ll tap into a broad lineup of low-cost mutual funds, commission-free ETFs and a range of self-directed brokerage options. Whether you’re already a Schwab client or evaluating providers for the first time, the SIMPLE IRA plan is tailored for employers who want strong investment flexibility without a hefty administrative price tag.

Key Features

• Employer contribution choices: dollar-for-dollar match up to 3% of compensation or a 2% nonelective contribution
• Automated payroll integration via ACH/MoneyLink for deferrals and company contributions
• Access to Schwab’s no-transaction-fee mutual funds and commission-free ETFs
• Online Adoption Agreement, Summary Plan Description and required notices generated automatically
• Employee self-service portal and mobile app for balance checks, fund exchanges and contribution tracking
• Optional fiduciary support (3(16) administration) to delegate SPD delivery, Form 5500 prep and deposit timing

Pricing and Fees

• Setup fee: $0
• Annual maintenance fee: $0
• Mutual fund expense ratios: as low as 0.03% for Schwab index funds
• ETF trades: $0 commission on Schwab ETFs and most U.S. exchange-listed securities
• Brokerage trades: standard equity trades also carry $0 commission; options trade fees may apply
• Non-NTF mutual funds: standard transaction fees apply when selecting funds outside the NTF roster

Setup Process

1. Adoption Agreement: Complete Schwab’s SIMPLE IRA Adoption Agreement and Employer’s Agreement.
2. Bank Link: Submit the ACH/MoneyLink form to authorize electronic transfers for payroll deferrals and employer contributions.
3. Employee Notices: Schwab generates the Summary Plan Description and Participant Notice; deliver these by the required deadlines (e.g., 60-day election period before the plan year).
4. Account Opening: Invite employees to open individual IRA accounts via Schwab’s portal. Each participant will receive a unique Group ID or plan number.
5. Go Live: Coordinate with payroll to begin regular deferral deposits and employer contributions. Plans must be established and employees notified by October 1 for current-year contributions.

Pros and Cons

Pros

• Extremely low cost with no setup or ongoing maintenance fees
• Wide selection of index funds, mutual funds and commission-free ETFs
• Robust online portal and mobile app—ideal for tech-savvy teams
• Automated document generation reduces administrative overhead
• Optional fiduciary services (3(16) and 3(38)) for added compliance support

Cons

• Limited advisory services compared with full-service providers
• Transaction fees apply for non-NTF mutual fund selections
• Some small businesses may require handholding beyond Schwab’s standard support

Best For

Tech-savvy, cost-conscious small businesses and existing Schwab brokerage clients who want a low-fee, flexible SIMPLE IRA solution with strong self-service tools and optional fiduciary backup.

Fidelity Investments: Comprehensive Small Business SIMPLE IRA Solutions

Fidelity brings decades of retirement expertise to its SIMPLE IRA offering, giving small employers a turnkey solution with robust administrative tools and deep investment options. With no account minimums and zero setup or maintenance fees, Fidelity’s plan is designed to scale alongside growing businesses. Whether you already work with Fidelity for personal accounts or are evaluating your first SIMPLE IRA provider, you’ll find a blend of automation and personal support that helps you stay compliant without sacrificing control.

Overview

Fidelity’s SIMPLE IRA is built for businesses with up to 100 eligible employees seeking a full-service plan. You’ll benefit from Fidelity’s established platform and a dedicated support team that guides you through plan launch, annual notices, and compliance. The absence of an account opening minimum combined with a wide menu of low-cost investments makes this plan accessible for startups and established firms alike. From Form 5500 assistance to ongoing fiduciary guidance, Fidelity helps lighten the administrative load so you can keep your focus on running your business.

Key Features

• Zero setup and annual maintenance fees—get started without a financial hurdle
• Fidelity PlanManager portal for electronic contributions, customizable dashboards, and reporting
• Broad investment lineup including zero-expense-ratio index funds, no-load mutual funds, ETFs, stocks, and bonds
• Automated SPD (Summary Plan Description) and participant notice delivery via secure email or mail
• Payroll integration toolkit to streamline deferrals and employer contributions with your vendor
• Optional 3(16) and 3(38) fiduciary services to shift administrative and investment oversight to Fidelity specialists

Pricing and Fees

Fidelity keeps costs transparent so you know exactly where your dollars go:

• Setup fee: $0
• Annual maintenance fee: $0
• Fund expense ratios: starting at 0.01% for Fidelity’s zero-expense-ratio index funds
• ETF and stock trades: $0 commission on U.S. exchange-listed securities
• Additional fees: standard brokerage commissions apply only to non-Fidelity offerings or over-the-counter trades

By combining a free core platform with ultra-low fund costs, Fidelity helps both plan sponsors and participants maximize every dollar of their retirement contributions.

Setup Process

1. Complete the Fidelity SIMPLE IRA Plan Agreement and Company Profile Form.
2. Designate authorized individuals and choose your employer contribution formula (match or nonelective).
3. Review and approve the Plan Sponsor’s electronic SPD and Participant Notice templates.
4. Invite employees to open individual SIMPLE IRA accounts online or by submitting paper forms.
5. Configure your payroll or bank link within PlanManager for automated deferrals and employer deposits.
6. Launch the plan—coordinate with your payroll provider to begin pre-tax salary deferrals and company contributions.

Most plan sponsors complete these steps well ahead of the October 1 deadline, ensuring contributions for the current tax year can begin without delay.

Pros and Cons

Pros

• Unrestricted access to Fidelity’s zero-expense index funds and a vast mutual fund lineup
• No account minimum and no platform fees—ideal for tight budgets
• PlanManager portal simplifies contributions, reporting, and participant communications
• Deep compliance support with fiduciary service options

Cons

• Initial paperwork can feel detailed—ample guidance is available but requires careful review
• Fewer in-house advisory services for custom investment strategies compared with some boutique TPAs

Best For

Companies that want broad investment flexibility, transparent pricing, and streamlined digital administration—backed by Fidelity’s longstanding retirement expertise.

Vanguard: Flexible and Low-Cost SIMPLE IRA Plans

Vanguard’s SIMPLE IRA offering stands out for its focus on cost efficiency and investor-friendly fund lineup. Known for pioneering index funds, Vanguard brings its low-expense philosophy to small-business retirement plans. If your goal is to minimize fund fees while providing employees access to a broad spectrum of mutual funds and ETFs, Vanguard delivers a compelling solution.

Overview

Vanguard’s SIMPLE IRA is designed for employers who prioritize long-term investment value over bells-and-whistles administration. There are no setup or annual maintenance fees, and participants gain immediate access to Vanguard’s signature low-cost index funds alongside a selection of no-load mutual funds and ETFs. Although Vanguard’s plan administration portal is straightforward rather than flashy, it covers essential tasks without hidden charges.

Key Features

• Zero setup and maintenance fees: Start your plan without upfront or recurring platform costs.
• Ultra-low expense ratios: Vanguard’s flagship index funds charge as little as 0.03%, helping accounts compound more efficiently over time.
• ETF trading: Commission-free ETF trades on Vanguard’s lineup deepen employee investment choices.
• Simple administration: Online forms for Adoption Agreement, Summary Plan Description (SPD) and annual notices streamline compliance.
• Basic reporting tools: A web portal for plan sponsors to view contribution history and participant balances.

Pricing and Fees

• Setup fee: $0
• Annual maintenance fee: $0
• Fund expense ratios: typically 0.03%–0.20% for index funds; 0.10%–0.50% for actively managed funds
• ETF trades: $0 commission on Vanguard’s ETFs; standard brokerage commissions apply for non-Vanguard securities
• No per-participant or hidden administrative charges

Setup Process

1. Adopt the plan: Complete Vanguard’s SIMPLE IRA Adoption Agreement online or by mail.
2. Deliver annual notices: Use Vanguard’s SPD and Participant Notice templates to notify employees within the 60-day election period.
3. Open accounts: Provide each eligible employee with Vanguard’s plan number so they can open individual IRA accounts electronically.
4. Coordinate contributions: Link your payroll system via ACH or manual upload to initiate employee deferrals and employer contributions.

Pros and Cons

Pros

• Industry-leading fund costs maximizes retirement savings
• No setup, maintenance or per-participant fees
• Commission-free trading on Vanguard ETFs

Cons

• Administration portal offers only basic reporting and document generation
• Limited third-party fund and brokerage window compared to full-service TPAs

Best For

Employers and plan sponsors who want to give employees access to rock-bottom fund expenses and a proven lineup of index funds and ETFs—without paying for extra administrative frills. Appropriate for businesses comfortable with a more hands-off, cost-focused platform.

T. Rowe Price: Personalized SIMPLE IRA Services for Growing Companies

T. Rowe Price brings its decades-long investment expertise and client-focused approach to its SIMPLE IRA plan, making it a standout choice for businesses that want more than just a cookie-cutter solution. With a dedicated retirement specialist assigned to your account, you get hands-on support for plan design, compliance questions and employee education—ideal for growing firms that value a bespoke experience.

Key Features

• Dedicated retirement specialists who work alongside your HR or finance team to refine contribution formulas, vesting schedules and investment lineups
• Flexible plan design options, including custom eligibility rules and alternative employer contribution structures
• Broad fund selection: proprietary actively managed strategies, low-cost index funds, target–date portfolios and specialty asset classes
• Employee workshops (onsite or virtual) and digital enrollment portals to boost participation and simplify onboarding
• Direct payroll integration with major vendors and secure ACH links for timely deferrals and employer deposits

Pricing and Fees

• Setup fee: Varies by plan size—typically ranges from $0 to $500. Reach out for a tailored quote based on your headcount and service needs.
• Annual administration fee: Generally $50–$100 per participant, depending on service tier and plan complexity
• Fund expense ratios: Index fund options start around 0.07%; actively managed funds range from roughly 0.55% to 1.25%
• Brokerage commissions: Approximately $25 per equity or ETF trade (select funds and model portfolios may trade commission-free)
• Document and compliance support (SPD updates, Form 5500 assistance) is bundled into the service fee—no surprise charges

Setup Process

1. Adoption Agreement: Complete T. Rowe Price’s SIMPLE IRA Adoption Agreement, indicating your preferred employer contribution formula (match or nonelective) and vesting approach.
2. Plan Sponsor Questionnaire: Provide basic company data and designate authorized individuals.
3. Payroll Coordination: Work with your payroll vendor or bank to establish ACH links for employee deferrals and employer contributions.
4. SPD & Notices: Review and approve the customized Summary Plan Description and Participant Notice templates; T. Rowe Price can handle electronic delivery or print mailings.
5. Employee Enrollment: Launch enrollment via the online portal or printed packets; the retirement specialist will host Q&A sessions as needed.
6. Go Live: Confirm first deferral and contribution uploads—your specialist monitors timing to ensure compliance with ERISA deposit rules.

Pros and Cons

Pros

• High-touch service with a dedicated retirement specialist
• Customizable plan design and educational support to drive participation
• A wide lineup of active, index and specialty funds to match diverse investment philosophies

Cons

• Higher setup and per-participant fees compared with no-frills providers
• Actively managed fund expense ratios can be substantially above passive alternatives
• Standard brokerage commissions on many securities may add trading costs

Best For

Businesses that prefer a white-glove experience—those willing to invest in a premium SIMPLE IRA plan with personalized guidance, robust educational resources and the flexibility to tailor contributions and vesting to their unique culture and growth trajectory.

Putnam Investments: Tailored SIMPLE IRA Plans for Small Employers

Overview

Putnam’s SIMPLE IRA offering is built specifically for smaller employers looking for a streamlined, yet customizable retirement solution. With decades of investment management experience, Putnam combines flexible plan design with an intuitive online portal—giving small-business owners a competitive edge. This plan is especially appealing if you want straightforward administration and the confidence of a well-established fund lineup under one roof.

Key Features

• Flexible employer contributions: choose between a dollar-for-dollar match (up to 3% of compensation) or a 2% nonelective contribution for all eligible employees.
• Plan Sponsor e-portal: manage deferral elections, track contributions and generate documents in a central dashboard.
• Automated document generation: Adoption Agreement, Summary Plan Description and annual notices are produced and updated electronically.
• Core and brokerage window: access a selection of Putnam funds alongside a self-directed brokerage option for broader investment choice.
• Dedicated support team: a Putnam specialist guides you through plan setup, annual renewals and compliance deliverables.

Pricing and Fees

• Setup fee: competitive or waived for plans below a certain headcount (verify current terms with Putnam).
• Annual administration fee: tiered per-participant fee designed to scale with your workforce.
• Fund expense ratios: Putnam’s mutual funds range from low-cost index options (around 0.25%) to actively managed strategies (up to 1.0%), providing a balance between passive and active management.

Setup Process

1. Adoption Agreement: Complete and submit Putnam’s SIMPLE IRA Adoption Agreement to establish the plan.
2. SPD Delivery: Putnam generates the Summary Plan Description (SPD) and Participant Notices; deliver these electronically or via mail within the required election period.
3. Account Opening: Each eligible employee receives instructions and a plan number to set up their individual IRA online.
4. Payroll Integration: Connect Putnam’s e-portal to your payroll system or vendor for seamless deferral and employer contribution transfers.
5. Plan Launch: Confirm first deposits; Putnam’s team monitors timing to ensure ERISA-compliant fund remittance.

Pros and Cons

Pros:

• Customizable employer match formulas to align with budget and culture
• Intuitive online portal with built-in document automation
• Access to Putnam’s full suite of actively managed and index funds

Cons:

• Fund lineup narrower than some larger providers, especially for passive ETFs
• Setup and per-participant fees may be higher than no-frills, self-service platforms

Best For

Employers seeking a balance between hands-on support and plan flexibility—those who want an easy-to-administer SIMPLE IRA with customizable match options and a proven fund roster.

Merrill Edge: Bank-Backed SIMPLE IRA with Seamless Integration

Merrill Edge brings the strength of Bank of America’s network to its SIMPLE IRA plan, making it an attractive choice for businesses that want tightly integrated banking and retirement services. As part of a full-service financial ecosystem, Merrill Edge allows you to fund your plan directly from your BoA business account, streamline contributions through a familiar online platform and manage investments without stepping outside your primary banking relationship. This cohesion can save time, reduce errors and give plan sponsors confidence that deferrals and employer contributions post on schedule.

Key Features

• Seamless ACH contributions from your Bank of America business checking or savings account
• Zero platform or account-maintenance fees—no surprise charges for plan sponsors
• Commission-free online trading for U.S. stocks and ETFs, plus access to a curated list of no-load mutual funds
• Digital account opening and enrollment portal for both sponsors and employees
• Consolidated statements and reporting alongside your business banking dashboard

Pricing and Fees

Merrill Edge keeps the cost structure straightforward:

• Setup fee: $0
• Annual maintenance fee: $0
• Trading commissions: $0 for online U.S. stock and ETF trades
• Mutual fund expense ratios: Vary by fund family; Merrill Edge offers a selection of low-cost, no-load options
• Transaction fees: Standard fees apply to trades outside the commission-free roster or for broker-assisted transactions

Because there’s no per-participant charge, your administrative cost scales only with your own time and payroll effort. Fund fees will depend on the investments you select, so lean toward low-expense funds to keep long-term costs in check.

Setup Process

1. Adoption Agreement
   Download and complete Merrill Edge’s SIMPLE IRA Adoption Agreement, selecting your employer contribution method (match or nonelective).
2. Bank Link
   Authorize ACH transfers from your BoA business account—this single setup handles both employee deferrals and employer deposits.
3. Employee Notices
   Use Merrill Edge’s electronic Summary Plan Description (SPD) and Participant Notice templates to satisfy ERISA’s delivery requirements.
4. Account Openings
   Invite each eligible employee to open a Merrill Edge IRA online, using the plan’s unique account number.
5. Go Live
   Coordinate with your payroll provider to begin withholding deferrals and sending employer contributions through the newly linked bank account.

Pros and Cons

Pros

• Deep integration with Bank of America simplifies funding and reconciliations
• No setup or maintenance fees keep sponsorship costs low
• Familiar Merrill Edge trading platform and consolidated banking statements
• Commission-free U.S. equity and ETF trades for plan participants

Cons

• Limited third-party mutual fund lineup compared with full-service TPAs
• Brokerage window may feel too open for sponsors preferring a narrow, pre-defined investment menu
• Minimal small-business-focused educational resources beyond core retirement materials

Best For

Bank of America customers and business owners who want a SIMPLE IRA plan that lives right alongside their existing banking relationship. If you value a single sign-on for payroll funding, account management and trading, Merrill Edge delivers a seamless, no-fee platform to keep your SIMPLE IRA administration running smoothly.

TD Ameritrade: User-Friendly SIMPLE IRA Platform with No Minimums

Overview

TD Ameritrade’s SIMPLE IRA offering combines straightforward plan administration with the power of a full-scale brokerage platform. There’s no minimum account balance and no setup fee, so even the smallest employers can establish a retirement plan without upfront costs. Backed by a well-known trading and research environment, TD Ameritrade appeals to businesses that value self-directed investment choices alongside basic SIMPLE IRA compliance support.

Key Features

• Zero setup and annual maintenance fees, regardless of company size
• No account minimum, allowing participants to get started with even small contributions
• Commission-free online trading for U.S. equities and ETFs
• Access to thinkorswim® platform for advanced charting, technical analysis and paper trading
• Curated list of no-transaction-fee mutual funds alongside a broad brokerage window
• Standard plan documents: Adoption Agreement, Summary Plan Description (SPD) and Participant Notice templates
• Online account opening and participant enrollment portal

Pricing and Fees

• Setup fee: $0
• Annual maintenance fee: $0
• Commission-free trades: U.S. stocks and ETFs
• Mutual fund transaction fees: Waived on TD Ameritrade’s no-transaction-fee roster; standard ticket charges apply for other funds
• Options trades: $0.65 per contract fee
• Broker-assisted trades: $25 per trade (if requested)

By keeping core services fee-free, TD Ameritrade lets employers and participants focus on building retirement savings rather than worrying about platform costs.

Setup Process

1. Adoption Agreement: Download and complete the SIMPLE IRA Adoption Agreement from TD Ameritrade’s website, choosing your employer contribution formula (match or nonelective).
2. Employee Notices: Use the provided SPD and Participant Notice templates to notify eligible employees within the 60-day election window.
3. Group Identification: Upon plan adoption, TD Ameritrade issues a Group ID or plan number for account openings.
4. Account Opening: Each eligible employee uses the Group ID to open an individual SIMPLE IRA online.
5. Contribution Link: Coordinate deferrals and employer contributions through your payroll provider or by setting up ACH transfers to TD Ameritrade.
6. Go Live: Begin processing salary deferrals and employer contributions on the next payroll cycle. Plans must be established—and employee notifications delivered—by October 1 to cover the current tax year.

Pros and Cons

Pros

• Truly no-minimum plan enables small businesses to participate
• Zero cost for setup and annual maintenance
• Advanced trading tools (thinkorswim®) and in-depth research
• Commission-free online U.S. equity and ETF trades
• Robust self-service portal for sponsors and participants

Cons

• Limited turnkey document automation compared with some TPAs
• No built-in Form 5500 preparation assistance for plans that require it
• Participant communications and compliance tasks remain largely sponsor-driven

Best For

Self-directed employers and employees who want professional-grade trading tools, deep research capabilities and zero platform costs—without a balance requirement. TD Ameritrade is ideal for teams comfortable handling their own SIMPLE IRA paperwork who value best-in-class brokerage services.

E*TRADE: Advanced Trading and SIMPLE IRA for Small Businesses

ETRADE’s SIMPLE IRA offering brings the robustness of a full-service brokerage to small-business retirement plans. Known for its powerful trading platforms and extensive research tools, ETRADE caters to employers who want to offer a sophisticated investment experience for employees without sacrificing compliance support. With zero setup fees and a broad lineup of commission-free ETFs and no-load mutual funds, E*TRADE strikes a balance between professional-grade trading capabilities and straightforward SIMPLE IRA administration.

Rather than forcing participants into a narrow investment menu, ETRADE provides a flexible brokerage window alongside pre-approved retirement funds. That means your team can choose among stocks, bonds, ETFs, mutual funds and even options, all within the familiar ETRADE interface. At the same time, plan sponsors gain access to an online document library, payroll integration guides and basic fiduciary support—so you can stay on top of ERISA requirements without reinventing the wheel.

Key Features

• Integrated payroll instructions: E*TRADE supplies clear, step-by-step guides for connecting with your payroll vendor and setting up ACH transfers to fund employee deferrals and employer contributions.
• Online plan document library: Instantly generate and download your Adoption Agreement, Summary Plan Description (SPD) and annual Participant Notice from a centralized portal.
• Wide investment selection: Offer participants a curated roster of no-load mutual funds and commission-free ETFs, plus the option to self-direct into thousands of publicly traded securities.
• Advanced trading platforms: Empower employees who like to take a hands-on approach with ETRADE Web, the Power ETRADE® platform or mobile apps—complete with real-time quotes, customizable dashboards and technical charts.
• Basic compliance support: While you remain the ERISA sponsor, E*TRADE helps by producing required notices, providing plan-level reporting and offering educational webinars on plan operations.

Pricing and Fees

• Setup fee: $0
• Annual maintenance fee: $0
• Commission-free trades: $0 for online equity and ETF trades; $0.65 per options contract
• Mutual fund expense ratios: Vary by fund family—many no-load funds and E*TRADE’s own mutual funds start around 0.20% to 0.40%
• Transaction fees: Standard ticket charges apply for mutual funds outside the no-load roster and broker-assisted trades

By eliminating setup and platform fees, E*TRADE ensures your administrative costs remain predictable. Investment fees depend on the options you select, so plan sponsors often encourage participants to gravitate toward low-cost funds and commission-free ETFs.

Setup Process

1. Adoption Agreement: Download and complete the E*TRADE SIMPLE IRA Adoption Agreement, selecting your employer contribution formula (match or nonelective).
2. Document Delivery: Use the online portal to generate the SPD and Participant Notice; distribute these within the 60-day election window via email or print.
3. Account Openings: Upon plan adoption, E*TRADE issues a unique Group ID for your company. Each eligible employee uses this ID to open an individual SIMPLE IRA online.
4. Payroll Integration: Follow E*TRADE’s payroll instructions or share the ACH form with your payroll vendor to initiate salary deferrals and company contributions.
5. Go Live: Coordinate with payroll to make your first deferral and employer contribution—E*TRADE monitors timing to help you meet IRS deposit deadlines.

Pros and Cons

Pros:

• Proven trading platforms and in-depth research tools
• No setup or annual maintenance fees
• Flexible brokerage window plus commission-free ETFs and no-load mutual funds
• Document automation and basic plan reporting

Cons:

• Platform complexity can be overwhelming for participants who prefer a hands-off approach
• Limited turnkey fiduciary services; sponsors handle most compliance tasks
• Fund lineup may be less streamlined compared with TPA-managed model portfolios

Best For

ETRADE is ideal for small businesses that value advanced trading capabilities alongside SIMPLE IRA administration. If your workforce includes self-directed investors or you anticipate a mix of active and passive participants, ETRADE delivers the tools and flexibility to satisfy both groups—without charging upfront or ongoing platform fees.

SoFi: Modern SIMPLE IRA with Competitive Employer Match

SoFi’s SIMPLE IRA brings a digital-first approach to small-business retirement plans, combining streamlined setup with an employer match that gives your team an instant boost. Built for startups and tech-oriented companies, SoFi’s platform emphasizes a clean user experience—employees manage their accounts via a mobile app, and sponsors oversee contributions through a simple online dashboard. Beyond its ease of use, SoFi stands out by offering a baseline 1% employer match at no added cost and optional advisor access for businesses seeking a bit more guidance.

Key Features

• 1% employer match: Automatically top up employee deferrals with a dollar-for-dollar 1% contribution on compensation.
• Automated enrollment toolkit: Digital templates and email workflows simplify SPD delivery, notice requirements and employee sign-ups.
• Mobile-first participant portal: Employees can track balances, adjust deferrals and trade funds right from the SoFi app.
• Advisor access (optional): Upgrade to SoFi Premium for unlimited sessions with certified financial planners and custom retirement guidance.
• Flexible investment lineup: Choose from a curated roster of low-cost ETFs, no-load mutual funds and managed model portfolios.

Pricing and Fees

• Setup fee: $0
• Annual maintenance fee: $0
• Fund expense ratios: Average 0.08% on SoFi’s ETF selections; some funds carry no expense ratio for SIMPLE IRA participants
• Employer match cost: Baked into the plan—no extra platform fees for the 1% match
• Premium advisory access (optional): $100/year for unlimited planner sessions

By eliminating base platform fees and covering the cost of the standard employer match, SoFi keeps sponsorship costs predictable. Any advisory fees are fully optional, so you only pay for the support you need.

Setup Process

1. Online Adoption Agreement: Complete SoFi’s digital plan adoption form and choose the 1% match option.
2. Electronic SPD & Notices: Customize and send the Summary Plan Description and Participant Notice via email or in-app messaging.
3. Employee Account Activation: Share the plan ID so participants can open their SIMPLE IRAs within the SoFi app or website.
4. Payroll Coordination: Link SoFi to your payroll system through secure API integrations or submit a straightforward ACH authorization form.
5. Launch: Confirm the first cycle of employee deferrals and employer contributions—SoFi monitors timing to ensure IRS-compliant deposits.

Most plan sponsors can get from adoption to live contributions in under two weeks, thanks to SoFi’s fully digital workflow.

Pros and Cons

Pros

• Modern, mobile-centric user experience for sponsors and participants
• No setup or maintenance fees—just the cost of contributions and underlying fund expenses
• Built-in 1% employer match with no hidden charges
• Optional, affordable access to SoFi financial planners

Cons

• Employer match capped at 1%, below the 3% maximum allowed by IRS rules
• Fund lineup is more limited than traditional brokerages or full-service TPAs
• No bundled 3(16) or 3(38) fiduciary services—compliance remains the sponsor’s responsibility

Best For

Startups and tech-savvy small businesses that want a no-frills, app-driven SIMPLE IRA solution with an automatic employer match. If you value speed of setup, a sleek participant experience and optional advice at a predictable price, SoFi delivers a modern alternative to traditional retirement plan providers.

Betterment: Automated SIMPLE IRA Solution for Small Businesses

Betterment takes the guesswork out of SIMPLE IRA administration by pairing a digital-first platform with automated investing and tax-efficient portfolio management. For small employers who prefer to outsource day-to-day plan operations—from fund selection to rebalancing—Betterment delivers a low-touch, scalable retirement solution. Its robo-advisor backbone ensures contributions are invested according to preconfigured strategies built around participant goals, without requiring sponsors to manage complex paperwork or market swings.

Key Features

• Goal-based portfolios: Participants choose target-date or risk-based models aligned with their retirement timelines.
• Automatic rebalancing: Portfolios adjust to maintain target asset allocations, reducing drift and manual oversight.
• Fractional shares: Every dollar of a contribution is invested immediately, even if it doesn’t buy a whole share.
• Tax-efficient allocation: Built-in tax-loss harvesting and asset location can enhance after-tax returns.
• Digital dashboards: Sponsors view real-time plan metrics, contribution history, and account balances in one portal.

Pricing and Fees

• Advisory fee: 0.25% of assets under management, covering portfolio management and platform services.
• Account minimum: None—participants can open an account with any contribution amount.
• Fund expense ratios: ETFs typically range from 0.03% to 0.12%, depending on asset class.
• No setup or per-participant fees: Betterment bundles all administration costs into its advisory fee.

Setup Process

1. Digital Application: Complete an online form to establish your SIMPLE IRA, specifying your chosen employer contribution formula (match up to 3% or 2% nonelective).
2. Plan Design Questionnaire: Provide company details, contribution structure, and eligibility rules—Betterment uses this to configure your plan.
3. Automated Notices: Betterment generates and delivers Summary Plan Descriptions and election notices via email or secure portal.
4. Employee Enrollment: Send each eligible team member a custom invite link to open their IRA and set deferral elections.
5. Launch Contributions: Coordinate initial payroll deferrals and employer deposits—Betterment tracks timing to ensure IRS-compliant remittance.

Pros and Cons

Pros

• Fully automated investing and rebalancing minimizes sponsor workload.
• No account minimums or hidden administrative fees.
• Tax-efficient features like tax-loss harvesting may improve net returns.
• Digital onboarding often completes in just a few days.

Cons

• Ongoing 0.25% advisory fee may exceed basic recordkeeping costs.
• Limited self-directed investment options—participants choose only from Betterment’s ETF portfolios.
• No bundled fiduciary services (3(16) or 3(38)); sponsors remain responsible for compliance deadlines.

Best For

Small businesses that prioritize hands-off plan administration and automated investing, and that value a streamlined digital experience over granular control of fund lineups. Betterment is ideal when you want a SIMPLE IRA that essentially runs itself, freeing you to focus on your core business.

Next Steps for Implementing Your SIMPLE IRA Plan

Now that you’ve explored the top SIMPLE IRA providers and identified the features most important to your business—whether that’s low fees, robust investment options, seamless payroll integration or fiduciary support—it’s time to move from research to action. A clear roadmap will help you compare your finalists, gather essential details and stay on track for a successful plan launch.

Here’s a simple checklist to guide your implementation:

• Review your shortlist. Narrow the field to two or three providers that best align with your cost structure, desired investment lineup and administrative needs.
• Request proposals and demos. Ask each provider for a detailed quote, sample Adoption Agreement and walkthrough of their online portal or mobile app. Pay special attention to setup fees, per-participant charges and any hidden costs.
• Compare support offerings. Evaluate each provider’s approach to Form 5500 preparation, SPD delivery, fiduciary services (3(16) and 3(38)) and employee education. Consider who will handle compliance deadlines and contribution remittance.
• Coordinate with payroll. Ensure your payroll vendor or in-house team can integrate with the chosen platform. Confirm timeline requirements for deferral deposits and employer contributions.
• Confirm your timeline. Establish key dates—plan adoption, notice delivery, account opening deadlines and the first deferral cycle. Mark the October 1 cutoff on your calendar if you plan to capture contributions for the current tax year.

Every step you take now will pay dividends in a smoother launch and ongoing administration. If you’d like expert support—ranging from turnkey plan setup to full fiduciary services—consider partnering with Summit Consulting Group’s administration and fiduciary services. Their team simplifies the process, manages ERISA compliance, and can even help reduce overall plan costs.