SIMPLE IRA - Additional Secure 2.0 Plan

SIMPLE IRA - Additional Secure 2.0 Plan

SIMPLE IRA – SECURE 2.0 Additional Plan Provisions Summary

1. Overview

Impact Development Fund’s SIMPLE IRA Plan includes new optional provisions made available under the SECURE 2.0 Act. These provisions allow the organization to expand contribution options, offer Roth SIMPLE features, and optionally increase employer contributions.

This article summarizes the Plan’s elections as documented in the SECURE 2.0 Employer Election Form.

2. Optional Increased Employee Contribution Limits (110%)

SECURE 2.0 allows certain employers to increase SIMPLE IRA deferral and catch‑up limits by 110% of the standard federal limit.

Employer Election

  • Impact Development Fund elected to allow increased Elective Deferrals and Catch‑Up Contributions, up to 110% of the 2024 federal limits.
  • This increase applies beginning January 1, 2026.

Important Notes

  • Employers choosing this option must increase:
    • Employer Matching Contribution to 4% of compensation, or
    • Employer Nonelective Contribution to 3% of compensation.

3. Mandatory 110% Increase (Small Employers Only)

This mandatory rule applies only to employers with 25 or fewer employees.

Employer Election

  • Impact Development Fund confirmed it had more than 25 employees, so the mandatory increase does not apply.

4. Increased Catch‑Up Contributions for Ages 60–63

SECURE 2.0 allows a higher catch‑up contribution limit for participants ages 60, 61, 62, or 63.

Employer Election

  • Impact Development Fund elected to allow the increased catch‑up contribution limits for these ages.
  • Effective beginning January 1 of the year elected on the employer form.

5. Additional Nonelective Employer Contributions (Optional)

SECURE 2.0 allows employers to make an additional nonelective contribution of up to:

  • 10% of compensation, capped at
  • $5,000 per employee per year.

Employer Election

  • Impact Development Fund did not elect to add additional nonelective contributions.

6. Roth SIMPLE Contributions

SECURE 2.0 allows SIMPLE IRAs to accept Roth contributions, either from employees or employers.

A. Roth Employee Elective Deferrals

Employees may be permitted to choose Roth (after‑tax) SIMPLE deferrals.

Employer Election

  • Impact Development Fund did not elect to allow Roth SIMPLE employee deferrals.

B. Roth Employer Contributions

Employers may allow employees to receive Matching or Nonelective contributions as Roth contributions.

Employer Election

  • Impact Development Fund did not elect to offer employer Roth SIMPLE contributions.

7. Employer Responsibilities

The employer acknowledged and agreed to:

  • Ensure the Plan is administered according to the elected provisions.
  • Notify all employees of the changes.
  • Notify payroll processors and SIMPLE IRA custodians of operational changes.
  • Update plan documents once formal SECURE 2.0 amendments are issued.
  • Accept responsibility for any operational adjustments required due to future IRS guidance.

      • Related Articles

      • SIMPLE IRA: Participation Notice & Summary

        SIMPLE IRA – Participation Notice & Summary Description 1. Overview Impact Development Fund offers a SIMPLE IRA retirement plan for eligible employees. This notice explains eligibility requirements, contribution rules, employer matching, and ...

      • HSA and FSA Plan Information

        Cafeteria Plan, HSA, and FSA Benefits Summary 1. Overview Impact Development Fund offers a Cafeteria Plan that allows eligible employees to pay for certain benefits using pre‑tax dollars, lowering taxable income. Employees may enroll in the following ...

      • IDF Benefits Administration – Summary (2026)

        IDF Benefits Administration – Summary (2026) 1. Overview The Benefits Administration guide outlines all IDF‑provided benefits, including insurance, retirement plans, paid time off, and professional development programs. Benefits vary depending on ...

      • UHC Medical Plan – HMO Gold Navigate (CO Only) – Summary of Benefits

        UHC Medical Plan – HMO Gold Navigate (CO Only) – Summary of Benefits 1. Overview The UnitedHealthcare HMO Gold Navigate (Colorado Only) plan provides comprehensive medical coverage to eligible employees and their families. This is a referral‑based ...

      • UHC Medical Plan – POS Gold Choice – Summary of Benefits

        UHC Medical Plan – POS Gold Choice – Summary of Benefits 1. Overview The UnitedHealthcare POS Gold Choice plan offers flexible medical coverage with both in‑network and out‑of‑network access. Employees are free to see specialists without referrals, ...