DRESHER, PA — Ascensus has begun offering Roth contribution options for all new SIMPLE IRA plans, becoming one of the first retirement plan providers to implement a provision of the SECURE 2.0 Act aimed at expanding retirement savings flexibility for employees of small businesses.
The company indicated employers establishing new SIMPLE IRA plans can immediately allow employees to make salary deferrals on either a traditional pre-tax or Roth after-tax basis. Employer matching and nonelective contributions will continue to be made on a pre-tax, tax-deductible basis.
The enhancement gives small employers access to a retirement plan feature previously unavailable under SIMPLE IRAs, allowing workers to choose between paying taxes on contributions today or potentially receiving qualified tax-free withdrawals in retirement.
“This enhancement is about providing choice, giving small business employees more flexibility to align their savings with their financial goals while keeping plans simple and accessible for employers,” Mary Torgerson, head of Small Business Retirement at Ascensus, stated.
The launch reflects changes authorized under the SECURE 2.0 Act, which expanded Roth contribution eligibility for SIMPLE IRA plans. Ascensus described the update as part of its broader effort to modernize retirement plan offerings for small businesses as employers adapt to evolving regulatory requirements.
The Roth option also enables participants to diversify retirement savings across multiple tax treatments without changing employers’ contribution structures or significantly increasing plan administration, according to the company.
Existing SIMPLE IRA plans administered by Ascensus will be eligible to add the Roth contribution feature beginning in fall 2026, with an effective date of Jan. 1, 2027.
Torgerson characterized Roth functionality as a response to increasing demand from employers and employees for greater retirement planning flexibility.
“SIMPLE IRAs have long been a vital retirement solution for small businesses, and adding Roth capability reflects both regulatory progress and growing client demand,” she added.
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