The SIMPLE IRA election window is here — Is your business prepared?

As the year winds down, employers offering a SIMPLE IRA need to pay attention to one crucial deadline: the election period. This is the time when employees can make or update their salary reduction agreements for the upcoming year. Staying on top of this process ensures your plan remains compliant and allows your team to maximize their retirement savings.

What is the SIMPLE IRA election window?

The SIMPLE IRA election window is the period when employees decide how much of their salary they want to defer into their retirement plan—or make changes to existing elections.

• Typical Window: November 2 through December 31 each year.
• Employer Notice Requirement: You must notify employees at least 60 days before the election period begins (typically before October 31st).

For the 2026 tax year, all elections must be finalized before December 31, 2025.

Employer role during the election window

As the employer, you have specific responsibilities during this window. Here’s what you need to do:

Plan participation

Decide whether you will continue offering the SIMPLE IRA for the next calendar year or transition to another type of retirement plan. This decision should be made before the election period begins, so employees have time to consider their options.

Contribution decisions

You must confirm how you will fund employer contributions for the year ahead. Employers can choose between:

• Matching contributions – Match employee contributions up to 3% of their pay.
• Nonelective contributions – Contribute 2% of each eligible employee’s pay, regardless of whether they make salary deferrals.

Eligibility updates

Review and update the eligibility criteria for your plan. Under IRS rules, an employee (including self-employed individuals) is eligible if they:

• Earned at least $5,000 in compensation during any two prior years, and
• Are expected to earn at least $5,000 in the current year.

You may set less restrictive rules if you choose, such as lowering or removing the $5,000 threshold.

Resuming contributions

Decide whether employees who previously suspended or terminated their salary reduction contributions will be allowed to resume contributions in the new year.

Provide notices to employees

At least 60 days before the election period begins (typically by October 31), every eligible employee must receive a notice that explains:

• The right to start, stop, or change salary reduction elections for the upcoming year.
• Details about the employer contribution method (match or nonelective).
• The effective date, so employees know when their elections will impact payroll deductions.

Set and communicate the election period

While the standard election window runs from November 2 through December 31, you may allow a more extended period if you wish. What matters most is that employees have enough time and information to make an informed decision.

Key updates for the upcoming plan year

Higher contribution limits Under SECURE 2.0

The SECURE 2.0 Act introduced significant updates to SIMPLE IRAs starting with the 2025 plan year:

• Employee deferral limit: The employee contribution limit increases to $17,600 (up from $16,500) for businesses with 0–25 employees.
• Enhanced employer contributions: Businesses with 26–100 employees can allow higher employee contributions if they increase their own contributions to either a 4% match (up from 3%) or a 3% non-elective contribution (up from 2%).

Learn more about SECURE 2.0 contribution limits.

Student loan repayment and retirement contributions

One of the most impactful updates in SECURE 2.0 is the student loan repayment matching provision. Employers can now treat an employee’s student loan payments the same way they would treat retirement contributions by making a matching contribution to the employee’s SIMPLE IRA.

This means that employees who prioritize paying off student debt do not have to miss out on building retirement savings. Even if they cannot contribute directly, they can still receive employer contributions toward their future.

For employers, it is a simple but powerful way to support team members who are balancing debt repayment with long-term financial goals.

See how student loan matching works.

California employers: CalSavers deadline approaching

If you’re a California employer with 1–4 employees and don’t currently offer a retirement plan, you must register for CalSavers by December 31, 2025.

Penalties for non-compliance:

• $250 per eligible employee if not corrected within 90 days of notice.
• $500 per eligible employee if not corrected within 180 days.

Avoid penalties and register for a SIMPLE IRA plan with WealthRabbit before the deadline. Learn more!

How WealthRabbit Simplifies Retirement Savings

Retirement planning can seem like a daunting task for businesses, and many are still hesitant to offer retirement plans because they believe it's too complex or time-consuming. Many small businesses hesitate to provide retirement plans due to administrative complexities, but Wealthrabbit eliminates those challenges with:

• Easy Setup – Follow simple step-by-step instructions or let our experts handle the setup for you.
• Employee Portal – Employees can easily manage their retirement accounts and stay on top of their savings.
• Intuitive Dashboard – Track employee contributions and monitor retirement plans with ease.
• Scheduled Contributions – Automate deposits so you never miss a contribution, even off-cycle.
• Portfolio Management – Give employees access to professionally designed investment portfolios.
• Smart Rebalancing – Keep investments aligned with long-term financial goals.

Let’s take the stress out of retirement planning—because your employees deserve a bright future, and you deserve a more straightforward way to help them get there. Ready to get started? WealthRabbit’s got you covered.

About the Author

Jason Ackerman, CPA, CFP®

Co-Founder & CEO at WealthRabbit

Jason Ackerman is a CPA, CFP®, and CGMA, and Co-Managing Partner at BNA CPAs & Advisors, where he has helped grow the firm several times over. He brings that same growth mindset, and a healthy skepticism of unnecessary complexity, to his work as Co-Founder of WealthRabbit. That combination of hands-on CPA experience and fintech innovation shapes the WealthRabbit blog's plan-comparison guides, so business owners can make a decision without needing a CPA in the room.