Self-Directed Simple IRA
A simple retirement plan for small business owners and employees who want low administrative costs, easy setup, and flexible investment options.
A SIMPLE IRA (Savings Incentive Match Plan for Employees) is designed for small businesses with 100 or fewer employees. It offers a way to provide retirement benefits without the administrative burden of a 401(k) plan.
SIMPLE IRAs come with higher contribution limits than standard IRAs and no annual plan reporting requirements. For small business owners, that means a straightforward way to offer employees a meaningful retirement benefit.
Self-directed SIMPLE IRAs from Horizon Trust enable employees to invest their retirement savings in alternative assets outside of traditional securities, including real estate, cryptocurrency, or private equity.
Contributions are tax-deductible, any earnings are tax-deferred, and both employees and employers can contribute. That means more ways to save, for you and your team.
2025 SIMPLE IRA Contribution Limits and Deadlines
- Employee Contribution Limit: $17,000 ($18,100 for employers with 25 or fewer employees)
- Catch-Up Contribution (Age 50+): $4,000 ($5,250 for ages 60 to 63 under SECURE 2.0)
- Employer Match: Up to 3% of employee compensation (4% for employers electing higher limits)
- Non-Elective Employer Contribution: 2% of each eligible employee's compensation, regardless of participation
- Contribution Deadline: Business tax filing deadline plus extensions, generally April 15, 2027
Explore a Smarter SIMPLE IRA Option
Enter your details below to learn how a Self-Directed SIMPLE IRA can offer low administrative burden, higher contribution limits, and flexible investment choices.
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Are Other Retirement Plans Too Complicated? Look for a SIMPLE Solution
If you want to offer retirement benefits without the complexity or expense of a 401(k), a SIMPLE IRA is a practical middle ground. It combines contributions from both employers and employees, low setup costs, and no annual plan filing requirements.
A self-directed SIMPLE IRA may sound more complicated, but it isn’t. Horizon Trust handles the required IRS account reporting, keeping administration simple for you and your employees.
When compared to other retirement plans, SIMPLE IRAs offer lots of advantages that make them attractive for small business owners:
- Less Administrative Burden: No complex annual filings like Form 5500.
- Dual Contributions: Both employer and employee can contribute, unlike SEP IRAs (employer-only).
- Self-Direction: Freedom to invest in alternative assets.
- Low Costs: Easy setup with minimal ongoing maintenance.
- Tax Advantages: Contributions are pre-tax, and earnings grow tax-deferred until withdrawal.
Why Small Business Owners Choose Self-Directed SIMPLE IRAs
- Simple Setup: Establish a plan for your employees quickly and easily.
- Flexible Contributions: Match employee deferrals or make non-elective contributions.
- Alternative Investment Access: Diversify into real estate, private lending, metals, and more.
- Employee Retention: Offering a SIMPLE IRA makes your business more competitive for hiring and retaining top talent.
- Tax Savings: Employer contributions are tax-deductible, and employees enjoy tax-deferred growth.
Self-Directed SIMPLE IRA Highlights
Tax Advantages:
Employee contributions are made pre-tax, lowering taxable income. Employer contributions are tax-deductible. Earnings grow tax-deferred until withdrawn.
Eligibility:
Employers must have 100 or fewer employees who each earned at least $5,000 in compensation during any two previous years. Employees earning at least $5,000 this year are eligible to participate.
Contribution Limits (2025):
Employees may contribute up to $16,500 per year ($20,000 if age 50 or older). Employers can match up to 3% or make a 2% non-elective contribution.
Investment Options:
Self-direct your SIMPLE IRA into traditional or alternative assets, including:
- Real estate
- Cryptocurrency
- Private placements
- Private loans or notes
- Precious metals
- Limited partnerships or LLCs
Rollover Options:
Funds may be rolled over to another SIMPLE IRA (after two years of participation) or into a Traditional IRA, SEP IRA, or 401(k) without penalty.
Withdrawals:
Withdrawals before age 59½ are subject to income tax and a 25% penalty if taken within the first two years of participation (10% thereafter).
SIMPLE IRA vs. SEP IRA vs. Solo 401(k)
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| Feature | SIMPLE IRA | SEP IRA | Solo 401(k) |
|---|---|---|---|
|
Eligibility |
≤100 employees |
Any size
|
No full-time employees (other than spouse)
|
|
Who Contributes
|
Employer + Employee
|
Employer only
|
Employer + Employee
|
|
Max Contribution (2025) |
$16,500 (+$3,500 catch-up) |
Up to $70,000 |
Up to $70,000 (+catch-up) |
|
Employer Match
|
Yes, up to 3% |
No |
Yes (as employer contribution) |
|
Loan Option
|
No |
No |
Yes, up to $50,000
|
|
Checkbook Control |
Limited (with custodian setup)
|
Available
|
Built-in
|
|
Best For |
Small employers offering benefits to staff |
Self-employed or micro-businesses
|
Solo entrepreneurs
|
Proven Success. Trusted Leadership. Real Impact.
At Horizon Trust, we make it simple to open and manage a Self-Directed IRA, so you can take control of your retirement on your terms. Founded by Greg Herlean, who has overseen more than $1.3 billion in real estate transactions, Horizon Trust was built by someone who understands what self-directed investors need: personalized service, fast transactions, and a custodian that stays out of your way.
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Open a Self-Directed SIMPLE IRA in 4 Easy Steps
Horizon Trust makes it easy for small businesses to establish a SIMPLE IRA that gives employees investment freedom and tax advantages.
At Horizon Trust, we believe in turning dreams into reality. Founded by Greg Herlean, who has masterfully managed over $1.3 billion in real estate transactions, our mission is to empower you to take control of your financial destiny using the tax-free advantages of a Self-Directed IRA. Retire wealthy.
Here’s how it works:
STEP 1
Establish the Plan
Complete IRS Form 5304-SIMPLE or 5305-SIMPLE. Horizon Trust will help ensure the plan meets IRS requirements and is structured for self-direction.
STEP 2
Notify Eligible Employees
Provide employees with plan details, including eligibility, contribution options, and investment flexibility.
STEP 4
Fund and Invest
Contributions can be made by payroll deduction or employer transfer. Once funded, participants can direct Horizon Trust to invest in their chosen assets.
STEP 3
Open Accounts
Each participant opens a self-directed SIMPLE IRA account with Horizon Trust.
Disclaimer
Horizon Trust Company is an independent passive Custodian and is not associated or affiliated with and does not recommend, promote or advise any specific investment, investment opportunity, investment sponsor, investment company or investment promoter or any agents, employees, representatives or other of such firms or entities. Investments are not FDIC Insured, offer no bank guarantee and may lose value.
Learn About Self-Directed SIMPLE IRAs
What Exactly Is a SIMPLE IRA?
A SIMPLE IRA (Savings Incentive Match Plan for Employees) is a tax-advantaged retirement savings plan for small businesses with 100 employees or fewer. SIMPLE IRAs are taxed like Traditional IRAs (no Roth options available) and allow both employer and employee contributions. Plans are simpler to administer than a 401(k) and come with higher contribution limits than standard IRAs.
When self-directed through Horizon Trust, participants can go beyond mutual funds to invest in alternative assets, building a portfolio that reflects their personal strategy.
SIMPLE IRA Eligibility
SIMPLE IRAs are an available option for most small businesses, provided you meet the proper eligibility requirements:
- The business must have 100 or fewer employees.
- Employees must have earned at least $5,000 in two previous years and expect to earn at least $5,000 this year.
- Employers must agree to either:
- Match employee contributions dollar-for-dollar up to 3%, or
- Contribute 2% of each eligible employee’s compensation (whether they participate or not).
SIMPLE IRA Withdrawals and RMDs
SIMPLE IRAs have required minimum distributions just like Traditional IRAs, but do come with slightly different early withdrawal penalties for the first two years of the plan.
- Withdrawals before age 59½ are taxed as ordinary income.
- If withdrawn within two years of the first contribution, a 25% early withdrawal penalty applies.
- After two years, funds can be rolled into another SIMPLE IRA or other qualified account (Traditional IRA, SEP IRA, or 401(k)).
SIMPLE IRA vs. Traditional IRA
SIMPLE and Traditional IRAs share many common characteristics, including tax-deferred status, required minimum distributions, and early withdrawal penalties. However, a SIMPLE IRA is employer-sponsored, allowing both employer and employee contributions. SIMPLE IRAs also come with higher contribution limits but have steeper early withdrawal penalties if taken within the plan’s first two years.
Your Future, Backed by Our Track Record
Trusted by investors nationwide to take control of their retirement through Self-Directed IRAs.
Helping clients grow and protect wealth across real estate, crypto, and private investments.