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Retirement Place > Retirement Planning > Qualified Plans: Small Business, Group & Enterprise Retirement Accounts 
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    Employer Sponsored Retirement Savings Plans | Compare Types of Small Business Retirement Plans


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With so many different types of retirement plans available and an employers' obligations under the new DOL/ERISA rules you may be asking "How to choose the best type of Business Retirement Plan for Yourself and Your Employees?" Should you start a SEP or SIMPLE IRA? Would my company benefit more with a 401(k) and if so, which type of 401(k) would be the best fit? Will you offer profit sharing incentives to your employees? Would your contributions limits be higher or your regulatory reporting requirements be lower under a different employer sponsored plan? Who will help reduce your fiduciary responsibilities? Give us a call at 919-719-7200 and let us help take the burden off of your shoulders today! 

All of the following account types are available through Place Trade either via full service or self-directed brokerage accounts, Investment Trust accounts or held directly with nationally recognized investment companies. We offer the most flexible retirement savings options to meet the unique needs of your business while offering great service at the best overall price! Retirement Plans are available for sole proprietors, small business, and enterprise. Please click here for more information on One Participant 401(k)s

 

 

Compare Small Business & Enterprise Retirement Savings Account Options

Features
/
Options
Payroll Deduction IRA SEP-IRA SIMPLE-IRA Safe Harbor 401(k) Automatic
Enrollment
401(k) - QACA
401(k) Profit Sharing Defined Benefit
Key Advantage

 

Easy to set up and maintain

View information regarding Retirement Accounts for Individuals

 

 

 

Easy to set up and maintain.

 

Salary reduction plan with little administrative paperwork.

 

Permits employee to contribute more than in other options without annual discrimination testing.

 

Provides high level of participation and permits high level of salary deferrals by employees. Also safe harbor relief for default investments.

 

Permits employee to contribute more than in other options.

For information regarding One Participant 401(k)s (a.k.a. Solo or Individual 401(k)s) please click here.

 

Permits employer to make large contributions for employees.

 

Provides a fixed, pre-established benefit for employees.

Employers Who Can Provide This Option

 

Any business with one or more employees.

 

Any business that does not currently maintain any other retirement plan.

 

Any business with 100 or fewer employees that does not currently maintain any other retirement plan.

 

Any business with one or more employees.

 

Any business with one or more employees.

 

Any business with one or more employees.

 

Any business with one or more employees.

 

Any business with one or more employees.

Employer's Responsibilities

 

Set up arrangements for employees to make payroll deduction contributions.

Transmit contributions for employees to funding vehicle.


No employer tax filing required.

 

May set up plan by completing IRS Form 5305-SEP.

No employer tax filing require

 

May set up by completing IRS Form 5304-SIMPLE or 5305-SIMPLE.

No employer tax filing required.

Bank or financial institution does most of the paperwork.

 

There is no model form to establish a plan.

Advice from a financial institution or employee benefits advisor may be necessary.

 

A minimum amount of employer contributions is required. 

Annual filing of IRS Form 5500 is required.

 

There is no model form to establish a plan. 

Advice from a financial institution or employee benefits advisor may be necessary.

 

Annual filing of IRS Form 5500 is required.

 

There is no model form to establish a plan.

Advice from a financial institution or employee benefits advisor may be necessary.


Annual filing of IRS Form 5500 required.

Also, requires annual nondiscrimination testing to ensure plan does not discriminate in favor of highly compensated employees.

 

There is no model form to establish a plan.

Advice from a financial institution or employee benefits advisor would be necessary.


Annual filing of IRS Form 5500 is required.

 

There is no model form to establish a plan.

Advice from a financial institution or employee benefits advisor would be necessary.

 

Annual filing of IRS Form 5500 is required. Actuary must determine funding obligations.
Funding Responsibility

 

Employee contributions remitted through payroll deduction.

 

Employer contributions only.

 

Employee salary reduction contributions and/or employer contributions.

 

Employee salary reduction contributions and employer contributions.

 

Employee salary reduction contributions and employer contributions.

 

Employee salary reduction contributions and/or employer contributions.

 

Employer contribution level can be determined year to year.

 

Primarily employer; may require or permit employee contributions.

Maximum Annual
Contribution
Per Participant

 

Up to $5,500 for 2016 and 2017.

Additional contributions of up to $1,000 for 2016 and 2017* can be made by participants age 50 or over.

*Indexed to inflation thereafter.

 

Up to 25% of compensation1 or a maximum of:

  • $53,000 in 2016 
  • $54,000 for 2017

 

Employee:

  • Up to $12,500 in 2016 and 2017.
  • Additional contributions of up to $3,000 for 2016 and 2017*can be made by participants age 50 or over.

 

Employer:

  • Either match employee contributions $ for $ up to 3% of compensation (can be reduced to as low as 1% in any 2 out of 5 years)
  • or contribute 2% of each eligible employee's compensation, up to $5,300 in 2016 and $5,400 in 20172.

 

Employee:

  • Up to $18,000 in 2016 and 2017.
  • Additional contributions can be made by participants age 50 or over.

 

Employer / Employee Combined:

  • Contributions per participant up to the lesser of 100% of compensation1 or $53,000 in 2016 and $54,000 for 2017.
  • Employer can deduct amounts that do not exceed 25% of aggregate compensation for all participants.

 

Employee:

  • Up to $18,000 in 2016 and 2017.
  • Additional contributions can be made by participants age 50 or over.

 

Employer / Employee Combined:

  • Contributions per participant up to the lesser of 100% of compensation1 or $53,000 in 2016 and $54,000 for 2017.
  • Employer can deduct amounts that do not exceed 25% of aggregate compensation for all participants.

 

Employee:

  • Up to $18,000 in 2016 and 2017.
  • Additional contributions can be made by participants age 50 or over.

 

Employer / Employee Combined:

  • Contributions per participant up to the lesser of 100% of compensation1 or $53,000 in 2016 and $54,000 for 2017.
  • Employer can deduct amounts that do not exceed 25% of aggregate compensation for all participants.

 

Contributions per participant up to the lesser of 100% of compensation1 or $53,000 for 2016 and $54,000 for 2017.

 

Employer can deduct amounts that do not exceed 25% of aggregate compensation for all participants.

 

Per plan terms, employer may permit or require employee contribution.

Minimum Employee Coverage
Requirements

 

Should be made available to all employees.

 

Must be offered to all employees who are at least 21 years of age, employed by the business for 3 of last 5 years and earned at least $600 in a year for 2016 and 2017. 

 

Must be offered to all employees who have earned at least $5,000 in previous 2 years, and are reasonably expected to earn at least $5,000 in the current year.

 

Generally, must be offered to all employees at least 21 years of age who worked at least 1,000 hours in previous year.

 

Generally, must include all employees who have not already opted out and those who are at least 21 years of age who worked at least 1,000 hours in previous year.

 

Generally, must be offered to all employees at least 21 years of age who worked at least 1,000 hours in previous year.

 

Generally, must be offered to all employees at least 21 years of age who worked at least 1,000 hours in previous year.

 

Must be offered to all employees at least 21 years of age who worked at least 1,000 hours in previous year.

Withdrawals
Loans and Payments

 

Withdrawals at any time; subject to current federal income taxes and a possible 10% penalty if the participant is under age 59 1/2.

 

Withdrawals at any time; subject to current federal income taxes and a possible 10% penalty if the participant is under age 59 1/2.

 

Withdrawals at any time subject to current federal income taxes.

If employee is under age 59 1/2, may be subject to:

  •  a 25% penalty if taken within the first 2 years of participation and
  • a possible 10% penalty if taken afterward.

 

Cannot take withdrawals until a specified event, such as:

  • reaching 59 1/2
  • death
  • separation from service or
  • other events as identified in the plan

May permit loans and hardship withdrawals. Withdrawals may be subject to a possible 10% penalty if participant is under age 59 1/2.

 

Cannot take withdrawals until a specified event, such as: 

  • reaching 59 1/2
  • death
  • separation from service or
  • other events as identified in the plan

May permit loans and hardship withdrawals. Withdrawals may be subject to a possible 10% penalty if participant is under age 59 1/2.

 

Cannot take withdrawals until a specified event, such as: 

  • reaching 59 1/2
  • death
  • separation from service or
  • other events as identified in the plan

May permit loans and hardship withdrawals. Withdrawals may be subject to a possible 10% penalty if participant is under age 59 1/2.

 

May permit loans and hardship withdrawals. Hardship withdrawals may be subject to a possible 10% penalty if the participant is under age 59 1/2.

Payment of benefits generally at retirement.

 

Payment of benefits generally at retirement, may offer participant loans.

Vesting

 

Immediate 100%

 

Immediate 100%

 

Employee salary reduction contributions and employer contributions vested 100% immediately.

 

Employee salary reduction contributions and most employer contributions vest immediately.  

Some employer contributions may vest over time according to plan terms.

 

Employee salary reduction contributions vest immediately. Employer contributions may vest over time according to plan terms.

 

Employee salary reduction contributions vest immediately.

Employer contributions may vest over time according to plan terms.

 

May vest over time according to plan terms.

 

May vest over time according to plan terms.

Contributor's
Options

 

Employee can decide how much to contribute at any time.

 

Employer can decide whether or not to make contributions year to year.

 

Employee can decide how much to contribute.

Employer must make matching contributions or contribute 2% of each employee's salary up to the set maximum.

 

Employees can decide how much to contribute pursuant to a salary reduction agreement. 

The employer must make either specified matching contributions or a 3% contribution to all participants.

 

Employees, unless they opt otherwise, must make salary reduction contributions specified by the employer.

The employer can make additional matching contributions as set by plan terms.

 

 

Employees can decide how much to contribute pursuant to a salary reduction agreement. 

The employer can make an additional contribution, including matching contributions as set by plan terms. 

 

Employer makes contribution as set by plan terms.

 

Employer makes contributions as set by plan terms.

Features
\
Options

Payroll Deduction IRA

SEP-IRA SIMPLE-IRA Safe Harbor 401(k)

Qualified Automatic

QACA

Learn more from a TPA

IRS FAQs

401(k) Profit Sharing Defined Benefit

Source: US DOL Small Business Retirement Savings Advisor

 

The information contained in this table is based on current interpretation of the law. Where IRS guidance is pending, assumptions have been made. Be sure to seek tax advice from your tax and/or legal advisor for additional rules and complete information prior to making any tax related decisions.

1   1Maximum compensation on which contributions can be based in 2016 is $265,000 and in 2017 is $270,000.
  2Maximum compensation on which employer 2% nonelective contributions can be based in 2016, is $265,000 and in 2017 is $270,000.

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Small Business & Enterprise Retirement - Employers: Starting a 401k Plan? Call us at 919-719-7200 today!‎

 

How can my company retirement plan best serve both my company and its employees? Our Retirement Plan Specialists will help you find and choose the best company retirement plan to meet your specific needs including accounting for the overall service, investment options as well as performance and low fees. We are not a cookie cutter, one size fits all, overpriced and under serviced offering company. We offer access to some of the best technology on the street however we will not leave you to fend for yourself in retirement plan cyberspace either (unless you tell us too). We work with many nationally recognized plan providers in addition to offering in house employer sponsored plans so that we can provide you with the very best fit at the best price to meet your needs. We offer experienced retirement professionals and superior technology to help you meet your fiduciary obligations. Finding a plan and a plan provider that meets all of these objectives is more important than just finding the lowest fees when it comes to meeting your fiduciary duty! 

 

Why is Place Trade the Smart Place for your Business Retirement Plan?

 

Multiple Retirement Plan Solutions | Low Cost Leader Among Full Service Providers | Award Winning Client Service!

 

Give us a call at 919-719-7200 today so that you can get back to your real work right away!

 

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Learn more about retirement planning by visiting some of the links below:

Roth IRA

SEP IRA

SIMPLE IRA

Traditional IRA

Qualified Plans

Rollover IRAs

Find out how Place Trade can help you get the most out of your college planning by visiting some of the links below:


Coverdell ESA

529 College Savings Plans

UGMA/UTMA Accounts