| SIMPLE IRA | 401(k) | |
|---|---|---|
| Contribution limits (2025) | $16,500 if under 50; $3,500 catch-up for 50 and older | $23,500 if under 50; $7,500 catch-up for 50 and older |
| Employer match | Obligatory | Optional |
| Ease of administration | Relatively simple | Can be more complex |
| Allows loans | No | Yes |
| Early withdrawal penalty | Up to 25 percent | 10 percent |