How can we help?

Small Business Plans

 

Whether you are a self-employed individual, or a small business owner with employees, there may be a plan to fit your needs. Our SEP IRA, SIMPLE IRA, and Self-employed 401(k) retirement saving plans are easy to setup and maintain.

 

   SEP IRA Self-Employed 401(K)  SIMPLE IRA
Who it's for
  • Self-employed individual or small business owner, including those with employees
  • Available to sole proprietors, partnerships, C corporations, S corporations
  • Self-employed individual or business owner with no employees other than a spouse
  • Available to sole proprietors, partnerships, C corporations, S corporations
  • Businesses with 100 or fewer employees and self-employed individuals
  • Available to sole proprietors, partnerships, C corporations, S corporations
Key Advantages
  • Easy to set up and maintain
  • Flexible annual funding requirements
  • A 401(k) with potentially higher contribution limits than SEP IRA
  • Salary deferral plan with less administration
Who can contribute
  • Funded solely by employer contributions
  • Funded by employee deferrals and employer contributions
  • Funded by employee deferrals and employer contributions
2019 employee contribution limits
  • N/A
  • Up to $19,000 in salary deferrals; $25,000 if age 50 or older
  • Up to $13,000 in salary deferrals; $16,000 if age 50 or older
2019 employer contribution limits
  • Up to 25% of compensation up to a maximum of $56,000
  • Employers may contribute up to 25% of compensation up to a maximum of $56,000
  • Either match employee contributions up to 3% of compensation; can be reduced to 1% in any two out of five years or contribute 2% of each employee's compensation, up to $5,000
Administrative responsibilities
  • No employer tax filings; employee notification for employer's contribution, if made
  • Annual Form 5500 filing after plan assets exceed $250,000
  • No employer tax filings; certain annual employee notifications must generally be made by November 1.
Access to assets
  • Withdraw at any time, but a 10% penalty may apply if you are under age 59½
  • Cannot take withdrawals from the plan until a "trigger" event occurs, such as turning age 59½, disability, and/or plan termination
  • Withdraw at any time, but a 10% penalty may apply if you are under age 59½. If the withdrawal is taken within first two years of participation in the plan, that penalty increases to 25%
Plan setup deadline
  • Establish by employer's tax filing deadline, plus extensions, usually April 15
  • Establish by December 31 (or fiscal year-end)
  • Establish by October 1

 

Was this article helpful?
0 out of 0 found this helpful