Retirement Plan Comparison
Feature |
Traditional 401(k) and Owner-Only |
401(k) Safe Harbor |
Profit Sharing |
Simple IRA |
Can Amend to a Traditional 401(k) |
N/A |
Yes |
Yes |
No |
Maximum Employee Deferral* (for pretax and Roth) |
$16,500 |
$16,500 |
N/A |
$11,500 |
Roth 401(k) Contribution Option |
Yes within deferral limit |
Yes within deferral limit |
N/A |
No |
Catch-up Contributions (for participants 50 or Older) |
$5,500 |
$5,500 |
N/A |
$2,500 |
Employer Contribution |
Employer option |
Tiered match
- 100% up to 3% and 50% of the next 2%, 4% maximum; or
- Non-elective contribution of 3% to all eligible participants
|
Discretionary, 25% up to $49,000 per individual* |
100% up to 3%; or 2% non-elective contribution |
Vesting |
Options available |
Immediate (Safe Harbor contributions)
Options available (other contributions) |
Options available |
Immediate |
Loans |
Yes |
Yes |
Yes |
No |
ADP/ACP Testing |
Yes |
No |
No |
No |
Top-Heavy Testing |
Yes |
Generally satisfied |
Yes |
No |
Investment Providers |
Choice of many |
Choice of many |
Choice of many |
Single |
Compatible with Money Purchase and Profit Sharing Plans |
Yes |
Yes |
N/A |
No |
|
| * Limit indexed annually by the IRS |
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