Retirement Plan Options

        SEP SIMPLE Profit
Sharing
Plan
        401k
Maximum employee contribution
through age 49
Not allowed $13,000 Not applicable $19,000
Maximum employee contribution
age 50+
Not allowed $16,000 Not applicable $25,000
Maximum employer contribution
through age 49
$56,000 $13,000 $56,000 $56,000
Maximum employer contribution
age 50+
$56,000 $16,000 $62,000 $62,000
Maximum combined contributions through age 49 $56,000 $26,000 $56,000 $56,000
Maximum combined contributions age 50+ $56,000 $32,000 $62,000 $62,000
Other maximum that
supersedes the above
25% of compensation Employer can
match up to
3% of compensation
Firm may not
deduct more
than 25% of
total payroll
100% of
employee deferrals
Are employer
contributions required?
No Yes No No
Administration Practically none:
basically an IRA
for the owner
Minimal:
akin to a series
of IRA accounts
IRS form 5500
required plus record
keeping for vesting
and other items
IRS form 5500
required plus record
keeping for vesting
and other items

Not sure what plan is best for your firm? Contact us for guidance.