In the fast-changing world of retirement planning, small business owners are facing a pivotal question: How can we offer retirement benefits that are simple, affordable, and still meet the evolving needs of a modern workforce?

SIMPLE IRA plans - officially known as Savings Incentive Match Plan for Employees - have long been a go-to solution for smaller companies looking for a tax-advantaged retirement plan with low administrative burden. But as financial expectations shift and employee needs become more diverse, it’s clear that “simple” can’t mean “static.”

The future of SIMPLE IRA plans lies not in reimagining the structure entirely, but in surrounding them with smarter tools, personalized support, and a deeper integration of financial wellness. The question isn’t whether these plans are still relevant - the answer is yes. The question is how to evolve them to meet the next generation of savers where they are.

A Strong Foundation - With Room to Grow

SIMPLE IRAs offer small businesses an approachable entry point into retirement benefits. They require employers to contribute either 2% of each eligible employee’s salary or match employee contributions up to 3%. The administrative lift is minimal, with no annual filing requirements for employers. That’s not changing - and for many, that’s the appeal.

What is changing is the level of sophistication employees expect from their workplace benefits.

Financial Wellness Is No Longer a “Nice-to-Have”

Increased financial stress, inflation, and student loan burdens mean that simply offering a retirement account is no longer enough. Employees want help navigating today’s financial pressures and planning for tomorrow. That’s where financial wellness and personalization come into play.

Think tools for budgeting. Workshops on debt management. One-on-one financial coaching. These services don’t just increase employee satisfaction - they directly impact contribution rates and long-term plan participation.

When employees feel more confident managing their finances today, they’re far more likely to engage with their retirement plan tomorrow.

Personalization and Technology: Raising the Bar

Another major opportunity for SIMPLE IRA evolution lies in personalization. Younger workers may prefer aggressive portfolios and digital-first tools. While other employees may value stability and hands-on support. Employers can now provide both, using technology to scale individualized experiences.

Modern platforms make it easy to offer personalized investment allocations based on goals, risk tolerance, and time horizon - even within SIMPLE IRA structures. Mobile access, educational content, and data-backed nudges help keep retirement top of mind, not out of sight.

Legislative Momentum: SECURE 2.0’s Impact

Federal legislation is also nudging SIMPLE IRAs into the future. The SECURE 2.0 Act introduced several updates aimed at improving access, boosting savings potential, and increasing plan flexibility.

Among the most notable:

• Higher catch-up contributions for employees between the ages of 60 and 63 during the calendar year.
• Expanded eligibility rules, allowing more part-time workers to participate.
• Employer matches for student loan repayments, helping those who may not be able to contribute directly to still benefit from the plan.

These updates offer a chance for employers to revisit how they present SIMPLE IRA benefits - and to reframe them as not just simple, but strategic.

What’s Next?

The future of SIMPLE IRA plans isn’t about turning them into complex 401(k) alternatives. It’s about building on what makes them great - accessibility, ease, and affordability - while expanding their impact through smart add-ons like financial wellness, personalization, and technology.

Let’s Build a Smarter SIMPLE IRA Together

The message is clear: SIMPLE IRAs have staying power, but to truly serve your workforce, they need to evolve. Now is the time to explore ways to modernize your plan - without sacrificing simplicity.

Get in touch with our team to talk through what a smarter SIMPLE IRA could look like for your business. Whether you’re just getting started or ready to enhance your current offering, we’re here to help.

Investment advice offered through OneDigital Investment Advisors LLC.