SMALL BUSINESS RETIREMENT PLANS - COMPARISON
401(k)
Solo 401(K)
PROFIT SHARING
SIMPLE IRA
SEP IRA
MONEY
PURCHASE
403(b)
Basic Plan Type
Defined
Contribution
Defined
Contribution
Defined
Contribution
IRA Based
IRA Based
Defined
Contribution
Defined
Contribution
Funding
Responsibility
Employee &
optional
Employer
Employee &
Employer
Employer
ONLY
Employee &
Employer
Employer
ONLY
Employer
ONLY
Employee &
Employer
depending on plan
type
Contribution
Flexibility
Yes
Yes
Yes
Very Limited
Yes
No; contribution
established at
plan setup
Yes
Maximum
Eligibility
Requirements
Age 21 with
one year of
service
Age 21 with
one year of
service
Age 21 with
two years of
service
Employees
earning $5,000
in current year and
any 2 prior years
Age 21 with any
service in three of
last five years
Age 21 with
two years of
service
Maximum
Annual Employee
Contribution
$18,000
$18,000
N/A
$12,500
N/A
N/A
Eligible upon hire;
age 21 with two
years of service
for employer
contribution
$18,000
Catch-Up
Contribution
(age 50 and over)
$6,000
$6,000
N/A
$3,000
N/A
N/A
$6,000
Maximum
Employer
Contributions
25% of
eligible
employee
compensation
25% of eligible
employee
compensation
25% of eligible
employee
compensation
Yes
Anytime
Yes
Anytime
Yes
Prior to fiscal year
end
25% of eligible
employee
compensation, or
$53,000,
whichever is less
No
Any time prior to
tax filing deadline
including
extensions
25% of eligible
employee
compensation
Loans
Establishment
Deadlines
100% up to 3%
match
to participants or
2% to all eligible
employees
No
Prior to 10/1;
as soon as feasible
for business
created after 10/1.
Up to 100% of
eligible compensation.
Employer + employee
contributions cannot
exceed $53,000.
Yes
Anytime
IRS 5500
Reporting
Yes
Yes, once assets
exceed $250K
Yes
No
No
Yes
Source: www.IRS.gov.
Securities and Advisory Services offered through Cantella & Co., Inc., Member FINRA/SIPC.
Yes
Prior to fiscal year
end
Depends on plan type