Investments Retirement

Compare: Employer-Sponsored Retirement Plans

Retirement Plan401(k)SIMPLE IRASEP IRA
Best forOver 100 employees1-100 employeesOnly owner
CostHighestCheapCheap
PaperworkMostLittleLittle
Required Annual ReportingYesNoNo
Employee Contribution Limits$19,500;
$26,000 if age 50 or over
$13,500;
$16,500 if age 50 or over
No employee contributions
Employer Elective ContributionsAllowedNot allowedAllowed (must be same percentage of salary for each employee)
Employer MatchingVaries2% non-elective or up to 3% matchN/A
Total Contribution Limits (Employee + Employer)$53,000;
$59,500 if age 50 or over
Employee contributions and employer matchesLesser of 25% of compensation or $57,000
Employer Deduction Limits25% of compensationNone25% of compensation
Account Type OptionsPre-tax and RothPre-tax onlyPre-tax only
Investment OptionsLimited (mutual funds)Vast (mutual funds, ETFs, stocks, bonds, etc.)Vast (mutual funds, ETFs, stocks, bonds, etc.)

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