Types of Small Business Retirement Plans

Question 1

SEP IRA (Simplified Employee Pension IRA)

Answer 1

Best for: Self-employed individuals and small businesses with few or no employees.

Question 2

SIMPLE IRA (Savings Incentive Match Plan for Employees)

Answer 2

Best for: Small businesses with 100 or fewer employees who want employee contributions.

Question 3

Solo 401(k) (One-Participant 401(k))

Answer 3

Best for: Self-employed business owners with no employees (except a spouse).

Question 4

Traditional 401(k) (Small Business 401(k))

Answer 4

Best for: Small businesses wanting higher contribution limits and flexibility.

Question 5

Safe Harbor 401(k)

Answer 5

Best for: Small businesses that want to avoid IRS nondiscrimination testing.