SIMPLE IRA Calculator
This calculator projects future SIMPLE IRA account balances using user inputs for current balance, annual employee contribution, employer contribution approach (match or 2% nonelective), expected returns, fees, and inflation. It produces both nominal and inflation-adjusted estimates and an initial sustainable withdrawal estimate.
The tool models employer contributions using common SIMPLE plan conventions: a dollar-for-dollar match up to a chosen percent of compensation or a 2% nonelective contribution. Users should confirm their plan's exact employer formula and IRS limits when finalizing plans.
Governance
Record 3b7bc010556a • Reviewed by Fidamen Standards Committee
Projects account value at retirement using annual compounding net of explicit annual fees, sums employee + employer contributions, and provides inflation-adjusted balance and estimated sustainable withdrawal income.
Inputs
Advanced inputs
Employer match details
Results
Projected balance (nominal)
$1,158,967.65
Projected balance (today's dollars)
$552,529.35
Total employee contributions
$450,000.00
Total employer contributions (estimated)
$30,000.00
Estimated initial sustainable withdrawal (nominal)
$46,358.71
Net annual return (after fees)
5.50%
| Output | Value | Unit |
|---|---|---|
| Projected balance (nominal) | $1,158,967.65 | USD |
| Projected balance (today's dollars) | $552,529.35 | USD |
| Total employee contributions | $450,000.00 | USD |
| Total employer contributions (estimated) | $30,000.00 | USD |
| Estimated initial sustainable withdrawal (nominal) | $46,358.71 | USD |
| Net annual return (after fees) | 5.50% | % |
Visualization
Methodology
We forecast balances with annual compounding using a net annual return equal to expected nominal return minus explicit annual fees provided by the user. Employee and employer contributions are treated as annual end-of-year contributions for the series calculation.
Employer contribution is estimated as either (employee compensation × match percent) when the employer match option is selected or (employee compensation × 2%) for the nonelective option. This simplifies plan variations; please cross-check against your plan document.
Key takeaways
Use this calculator to estimate future SIMPLE IRA balances and compare employer contribution approaches. It is designed for planning and educational use, not as tax or legal advice.
Validate all inputs against plan documents and current IRS rules before making contribution decisions.
Worked examples
Example: $10,000 current balance, $15,000 employee contribution, $50,000 compensation, 3% employer match, 6% return, 0.5% fees, 30 years: calculator returns a nominal projected balance and an inflation-adjusted equivalent, plus cumulative contributions and initial withdrawal estimate.
Edge case note: if net return equals zero, the calculator sums contributions linearly for growth (avoids division by zero).
F.A.Q.
Does this tool enforce IRS SIMPLE IRA contribution limits?
No. This calculator does not automatically enforce annual IRS contribution caps or catch-up rules. You must ensure your entered employee contribution does not exceed applicable IRS limits for the tax year and whether catch-up contributions apply.
How are employer contributions estimated?
If 'match' is selected the employer contribution is estimated as employee compensation × employer match percent. If 'nonelective' is selected the employer contribution is estimated as 2% of compensation. Actual plan formulas may vary; use this as an estimate and verify with plan documents.
Are fees and inflation included?
Yes. The calculator subtracts the annual fee percentage from the expected nominal return to compute a net return, and it separately adjusts the projected balance to today’s dollars using the inflation rate you provide.
How accurate are the withdrawal estimates?
Withdrawal estimates are simple initial-year projections using the chosen withdrawal rate. They do not model sequence-of-return risk, taxes, required minimum distributions, or changing spending patterns. Use them for planning only.
What if my net return is zero?
The model falls back to linear accumulation of contributions when net return equals zero to avoid divide-by-zero errors. This is an approximation and noted in the example section.
Sources & citations
- IRS - SIMPLE IRA information — https://www.irs.gov/retirement-plans/simple-ira-plan-contribution-limits
- National Institute of Standards and Technology (NIST) — https://www.nist.gov
- International Organization for Standardization (ISO) — https://www.iso.org
- Institute of Electrical and Electronics Engineers (IEEE) — https://www.ieee.org
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov
- IRS Publication 590-B — Distributions from Individual Retirement Arrangements — https://www.irs.gov/publications/p590b
- IRS Required Minimum Distribution Worksheets — https://www.irs.gov/retirement-plans/plan-participant-employee/required-minimum-distribution-worksheets
- Social Security Administration — Retirement Benefits — https://www.ssa.gov/benefits/retirement/
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: 3b7bc010556aWhat changed (latest)
v1.0.0 • 2025-11-30 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-30 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 30, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-30 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 93990829eb2c
- https://www.ieee.org
- https://www.irs.gov/publications/p590b
- https://www.irs.gov/retirement-plans/plan-participant-employee/required-minimum-distribution-worksheets
- https://www.irs.gov/retirement-plans/simple-ira-plan-contribution-limits
- https://www.iso.org
- https://www.nist.gov
- https://www.osha.gov
- https://www.ssa.gov/benefits/retirement/