Retirement Plan Options
Whether it’s just you or you and your employees, we can help you find a retirement plan that’s right for you. Take a look at how they compare and let's discuss how to implement the plan in your business.
SEP IRA
A Simplified Employee Pension (SEP) IRA is a plan wholly funded by the employer. This plan allows the employer tax-deductible contributions, and any growth is tax-deferred for the employee. Contributions are flexible but are generally limited to 25% of the self-employment income and must be made for all eligible employees.
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Best For: Small business owners, including those with employees.
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Maximum Contribution: For 2024, up to 25% of an employee's compensation or $69,000 (whichever is less).
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Employee Contribution: Only the employer contributes; employees cannot contribute.
Solo 401(k)
A Solo 401k, also commonly referred to as an individual 401k, is designed for self-employed individuals without full-time employees. This plan enables you (and your spouse if he or she works for you) to higher contribution limits. Both Roth and pre-tax salary deferrals may be permitted.
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Best For: Self-employed individuals or small business owners with no employees (other than a spouse).
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Maximum Contribution: For 2024, up to $69,000 annually (combined employer and employee contributions).
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Employee Contribution: Both employer and employee contributions are allowed. The employee contribution limit is the same as a traditional 401(k).
SIMPLE
A Savings Incentive Match Plan for Employees (SIMPLE) allows both the employer and employee to contribute to employee retirement accounts with potential tax benefits for employer contributions and the ability for employees to make pre-tax contributions. This plan is intended for businesses with steady profits.
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Best For: Small businesses with 100 or fewer employees.
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Maximum Contribution: For 2024, employees can contribute up to $16,000, with a $3,500 catch-up contribution for those 50 and older. Employers can choose to match employee contributions up to 3% or make a fixed contribution of 2% of each eligible employee's compensation.
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Employee Contribution: Employees contribute a percentage of their salary, and employers must contribute either a matching contribution or a non-elective contribution.
401(k)
A 401k plan is a retirement savings plan offered by an employer to eligible employees. The plan may take payroll deductions pre-tax, as a traditional 401k plan structure, or after-tax as a Roth 401k plan structure.
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Best For: Larger businesses with multiple employees.
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Maximum Contribution: For 2024, up to $23,000 for employees, with a $7,000 catch-up contribution for those 50 and older. Employers can contribute additional amounts.
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Employee Contribution: Employees can contribute a portion of their salary on a pre-tax basis, and some employers may offer a match or profit-sharing contribution.