Employer retirement plans (2025)

What this does

How to read it Visual: grouped bars for employee vs employer pieces under each plan.

Watch out 2025 teaching caps: elective deferral $23,500 (401(k)); SIMPLE $16,500; catch-up 50+ $7,500 / SIMPLE $3,500; SEP/overall DC §415(c) $70,000; compensation cap $350,000. Confirm IRS COLA before exam.

Compare 2025 employer plan limits: SEP vs SIMPLE vs 401(k) elective deferrals and employer contributions.

Visual: grouped bars for employee vs employer pieces under each plan.

2025 contribution limits

Employee compensation (eligible) Employee elective deferral Age Employer contribution %

Total additions (capped)

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Employee deferral + employer piece under 2025 limits.

Employee deferral vs employer contribution

Max employee deferral

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Employer contribution

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Total (capped)

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Exam trap: SEP is employer-only (no elective deferrals). SIMPLE has lower deferral limits and mandatory employer match/nonelective. Overall §415(c) limit caps annual additions. Prohibited transactions (self-dealing with plan assets) are a separate exam theme.

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Study tool only — not official IRS software. Figures labeled 2025 track law/forms through Dec 31, 2025. Confirm against current IRS pubs before the exam.