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Ascensus Expands SIMPLE IRA Offering to Support Roth Contributions

Ascensus, a leading player in the American retirement savings landscape, has made a significant stride in enhancing its SIMPLE IRA offerings. The company revealed that it now accommodates Roth contributions for all newly established SIMPLE IRA plans. This change is designed to provide small business employers and their teams with additional, tax-advantaged savings avenues.

The enhancement comes in response to the recent changes brought about by the SECURE 2.0 Act, positioning Ascensus amongst the first providers to introduce this capability in the marketplace. Effective immediately, employers setting up a new SIMPLE IRA plan with Ascensus can provide their employees the choice of making salary deferrals either on a traditional pre-tax basis or using after-tax Roth contributions. It's important to note, however, that employer contributions will remain tax-deductible and will continue to be made on a pre-tax basis regardless of whether employees opt for Roth contributions.

Mary Torgerson, Ascensus's Head of Small Business Retirement, emphasized the core motivation behind this enhancement: providing employees with more flexibility in aligning their savings with their individual financial goals. She remarked, "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." Torgerson underlined that SIMPLE IRAs have historically served as a crucial retirement solution for small businesses, and the integration of Roth options signifies both regulatory progress and a response to increasing client demand.

The Roth contribution feature enriches the retirement savings approach for participants, enabling them to pay taxes at the time of contribution rather than at withdrawal. This structure could potentially lead to tax-free qualified withdrawals during retirement, creating a robust avenue for individuals to manage their tax liabilities effectively over the long term. Furthermore, this new option allows savers to diversify their tax strategies while accumulating substantial retirement assets.

From the employer's perspective, adding this Roth option enhances their benefits package, offering more choices without significantly complicating plan design or modifying their existing contribution strategies. This launch serves as an example of Ascensus's ongoing commitment to modernizing retirement plan solutions tailored to the small business sector, aiding both advisors and employers in adapting to the changing regulatory landscape and meeting evolving participant needs.

Existing SIMPLE IRA plans managed by Ascensus can anticipate the addition of the Roth contribution option starting in the fall of 2026, with a proposed effective date set for January 1, 2027.

About Ascensus

Ascensus positions itself as a keystone in America's saving ecosystem, making saving more accessible by fusing intuitive technology, artificial intelligence, and a high-touch service model. The firm supports better financial outcomes for a wide range of stakeholders including savers, small to mid-sized enterprises, state governments, and prominent financial institutions. Ascensus offers an extensive array of retirement plan solutions, third-party administration, educational savings programs, and more, overseeing over $913 billion in assets as of March 31, 2026. With more than 5,000 employees, Ascensus strives to simplify saving and maximize outcomes for all involved.

For further details, consult ascensus.com.