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Can an Employer Contribute to an Employee's Personal Roth IRA?

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The SECURE 2.0 Act allows employers to contribute to SIMPLE IRAs and SEP IRAs that are set up as Roth accounts.

This can provide employees with the benefits of Roth savings, including tax-free withdrawals in retirement.

For 2025 , employees can contribute up to $16,500 to a SIMPLE IRA, with an additional catch-up contribution of $ 3,500 for those aged 50 .

Employers cannot directly contribute to an employee’s personal Roth IRA.

SECURE 2.0 Act of 2022 has expanded the possibilities for retirement savings through Roth options in SIMPLE and SEP IRAs.

These changes offer employees greater flexibility in choosing between pre-tax and after-tax contributions.