Employee IRAs

	SEP IRA
Description	Employer-sponsored IRA.
Maximum Annual Contributions	The lesser of 25% of first $305,000 compensation or $61,000.
Catch-up Contributions	N/A
Tax-Deferred Earnings	Yes
Tax-Deductible Contributions	Employer contribution is tax deductible.
Rollover or Transfer	Yes
Distributions	Required minimum distributions at age 72. 10% penalty tax for early distributions.
	SIMPLE IRA
Description	Employer-sponsored IRA. Employee makes salary deferral contributions and employer makes matching contributions.
Maximum Annual Contributions	$14,000 employee salary deferral. Employer matches employee contributions up to 3% of salary.
Catch-up Contributions	Age 50 and over can contribute $3,000
Tax-Deferred Earnings	Yes
Tax-Deductible Contributions	Only employer contribution is tax deductible.
Rollover or Transfer	Yes, but only after 2 years of the first contribution.
Distributions	Required minimum distributions at age 72. Early distribution within 2 years of first contribution with 25% penalty tax. Early distribution after 2 years of first contribution with 10% tax.

	SEP IRA	SIMPLE IRA
Description	Employer-sponsored IRA.	Employer-sponsored IRA. Employee makes salary deferral contributions and employer makes matching contributions.
Maximum Annual Contributions	The lesser of 25% of first $305,000 compensation or $61,000.	$14,000 employee salary deferral. Employer matches employee contributions up to 3% of salary.
Catch-up Contributions	N/A	Age 50 and over can contribute $3,000
Tax-Deferred Earnings	Yes	Yes
Tax-Deductible Contributions	Employer contribution is tax deductible.	Only employer contribution is tax deductible.
Rollover or Transfer	Yes	Yes, but only after 2 years of the first contribution.
Distributions	Required minimum distributions at age 72. 10% penalty tax for early distributions.	Required minimum distributions at age 72. Early distribution within 2 years of first contribution with 25% penalty tax. Early distribution after 2 years of first contribution with 10% tax.