CPA Urges Owners to Weigh Roth SIMPLE IRAs and HSAs

Small business owners should build retirement savings in several tax categories rather than counting on the eventual sale of their company, Nathan B. Alexander, a certified public accountant and certified financial planner who holds the title of vice president at Trust Company of Vermont, wrote in a column published by BusinessWest on October 13, 2026.

Alexander pointed to the SECURE 2.0 Act, passed in 2023, which allowed SIMPLE-IRA and SEP-IRA plans to carry a Roth feature. Under a Roth SIMPLE-IRA, an owner younger than 50 can set aside as much as $17,000 a year regardless of income level, he wrote. An owner who contributed the maximum for 10 years and earned 6.5% would hold close to $500,000 after two decades, including more than $330,000 in growth that is not taxed, according to the column.

Roth 401(k) plans permit larger contributions but carry higher administrative expenses, while Roth SIMPLE and SEP accounts have only recently been offered broadly by large investment firms at lower cost, he wrote. Roth SIMPLE plans require a 3% match for eligible employees, and owners can match their own contributions.

Alexander also recommended health savings accounts paired with qualifying insurance, calling an invested HSA "a very underused tool." Contributions are deductible up to $4,400 for an individual and $8,750 for a family under age 50, and withdrawals for qualified medical costs are untaxed, he wrote.

This story was first reported by BusinessWest.