What is the difference from simple ira with more 2 yrs from a sep ira

A SEP IRA is a Simplified Employee Pension (SEP) allowing contributions to a traditional IRA, generally for small businesses (but can be any size).  Only employers make contributions for their employees; employees can not contribute.  

An employer can make contributions to an employee's SEP-IRA that do not exceed the lesser of:

1. 25% of the employee's compensation, or
2. $69,000 for 2024 ($66,000 for 2023, $61,000 for 2022, $58,000 for 2021 and $57,000 for 2020)

Note: Elective salary deferrals and catch-up contributions are not permitted in SEP plans. 

Compare that to a SIMPLE plan (Savings Incentive Match Plan for Employees) allowing contributions to a traditional IRA but is limited to businesses with 100 or fewer employees.  Both employers and employees can contribute.  

Contributions include:

1. salary reduction contributions and
2. employer contributions: a. matching contributions or b. nonelective contributions.

No other contributions can be made to a SIMPLE IRA plan.

Employee salary contributions to a SIMPLE plan cannot exceed $16,000 in 2024 ($15,500 in 2023).  Catch up contributions for employees age of 50 or over are allowed (max $3500 for 2023/2024).