SEPS, SIMPLES & 401(k)s

SEP IRA

(Simplified Employee Pension Individual Retirement Account)

• Allows for Employers or Business Owners to contribute for themselves and their employees
• The Employer annual contribution can vary year to year
• The Employer and Employees must receive contribution at the same percentage of salary
• Employers can contribute up to the lesser of $57,000 or 25% of their salary for themselves
• Trustee is responsible for deposits, annual statements and IRS required documents

SIMPLE 401(K)/IRA

(Savings Incentive Match Plan for Employees Individual Retirement Account)

• Both Employees and Employers can contribute
• Employees are fully vested in all contributions starting day one of employment
• No discretionary match and requires the Employer to contribute a set amount to all employee accounts
  • Either dollar-for-dollar matching contributions, up to 3% of employee's compensation or fixed nonelective contributions of 2% of compensation
• Participants can contribute up to $13,500 or $16,500 if over 50 years of age
• Accounts are individually managed by Participants

401(k) Profit Sharing Retirement Plan

• Both Employees and Employers can contribute
• Graded vesting scheduled is available to keep and reward key employees based on their years of service
• Discretionary match available, resulting in the ability to do Profit Sharing contributions
• The maximum contribution limit up to $57,000 or $63,500 if over 50 years of age
• Participants can contribute up to $19,500 or $26,000 if over 50 years of age on an annual basis
• Employer contributions are considered a tax-deductible business expense and grow on a tax-deferred basis
• A Third-Party Administrator oversees the operation of a 401(k) Retirement Plan