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Which Business Retirement Plan is Right for You?

Compare the basic characteristics of the business retirement plans below and select the account that is right for your business.  Have questions?  Use our Small Business Retirement Plan selector tool, download our Small Business Retirement Plan Brochure or call E*TRADE at 1-888-402-0654.

SEP IRA

SIMPLE IRA

Individual and Roth Individual 401(k) Plans

Profit Sharing Plan

Money Purchase Plan

The Simplified Employee Pension Plan (SEP) provides employers with a simplified method of making contributions toward their own and their employees retirement.

Savings Incentive Match Plan for Employees (SIMPLE) IRA provides a flexible and affordable retirement plan for small businesses with 100 or fewer employees.

Individual 401(k) and Roth Individual 401(k) plans are designed for self-employed individuals who have no employees other than a spouse. The plans are designed for individuals who want to maximize their retirement savings and have generous contribution limits.

Profit Sharing Plans allow employers to give their employees a share in the profits of the company. Employees receive a percentage of profits based on the company's earnings.

Money Purchase Plans are defined contribution plans that require fixed employer contributions each year.

Download an Application

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Download an Application

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Download an Application

Learn More

Download an Application

Learn More

Download an Application

Learn More

Contributions

Contribution limits:  Up to $51,000 in 2013 ($52,000 in 2014) or 25% of compensation, whichever is less, to you and your employee's retirement

Contribution deadline: 
The employer's tax filing deadline (plus extensions)

Who contributes: 
Employer

Contribution limits:  Employees salary deferrals up to $12,000 (up to $2,500 more if over age 50). Employers must match 100% up to 3% of employee's salary deferrals, or 2% for all eligible employees (maximum non-elective $5,200)

Contribution deadline: 
The employer's tax filing deadline (plus extensions)

Who contributes: 
Employer and employee

Contribution limits:  Up to $17,500 salary deferrals (up to $5,500 more if over age 50). These salary deferrals can be split between the pre-tax Individual 401(k) account and the after-tax Roth Individual 401(k) account. A profit sharing contribution can be made up to $51,000 in 2013 ($52,000 in 2014) or 25% of compensation, whichever is less.  The dollar limit increases to $56,500 in 2013 ($57,500 in 2014) if age 50 or older. This discretionary contribution must be made to the pre-tax Individual 401(k) account. Total yearly contributions cannot exceed $51,000 in 2013 ($52,000 in 2014) or $100% of compensation. The yearly dollar limit increases to $56,500 in 2013 ($57,500 in 2014) if over age 50

Contribution deadline: 
The employer's tax filing deadline (plus extensions)

Who contributes: 
Self-employed individual/business owner and spouse

Contribution limits:  Up to $51,000 in 2013 ($52,000 in 2014) or 25% of compensation, (whichever is less), to you and your employee's retirement

Contribution deadline: 
The employer's tax filing deadline (plus extensions)

Who contributes: 
Employer

Contribution limits: :  Up to $51,000 in 2013 ($52,000 in 2014) or 25% of compensation (whichever is less) to you and your employee's retirement

Contribution deadline: 
The employer's tax filing deadline (plus extensions)

Who contributes: 
Employer

Account Establishment Deadlines

Must be established by the employer's tax filing deadline (plus extensions) for the tax year to which the qualifying contribution(s) will apply.

Must be established by October 1 of the tax year to which the qualifying contribution(s) will apply.

Must be established by December 31 of the tax year to which the qualifying contribution(s) will apply.

Must be established by December 31 of the tax year to which the qualifying contribution(s) will apply.

Must be established by December 31 of the tax year to which the qualifying contribution(s) will apply.

Advantages for Employer

Deduct contributions as a business expense

Contributions are strictly discretionary

Low administrative costs and easy plan management

Recruit and retain quality employees

Deduct contributions as business' expense

Allows employees to share in the cost of funding their accounts

Recruit and retain quality employees

Deduct contributions as a business expense.

Contributions are strictly discretionary and are not tied to profits.

Allows borrowing against retirement assets.

Opportunity to share profits with employees

Contributions are strictly discretionary and are not tied to profits

Allows you to choose a vesting schedule

Recruit and retain quality employees

Deduct contributions as a business expense

Allows you to choose a vesting schedule

Recruit and retain quality employees

Advantages for Employees

Tax deferred retirement savings

Employer funded

Employees can also invest in Traditional and Roth IRAs

Tax deferred retirement savings

Employee salary deferrals reduce taxable income for the contribution year

Employees can also invest in Traditional and Roth IRAs

Tax deferred retirement savings.

The Individual 401(k) account reduces taxable income.

Owner/spouse can also invest in Traditional and Roth IRAs.

The Roth Individual 401(k) is available to those high income individuals that do not qualify to contribute directly to a Roth IRA.

Share of profit based on earnings.

Employees can also invest in Traditional and Roth IRAs

Tax deferred retirement savings

Know how much is being contributed to their account

Eligibility Requirements

Self-employed or small business owner

Any employee 21 or older working for you at least three of the past five years, and earns at least $550.

Business with 100 or fewer employees that do not maintain another qualified retirement plan

Any employee expected to earn at least $5,000 this year, and who earned at least $5,000 in the two immediately preceding years

Self-employed individual and small businesses with no eligible employees other than the owner and spouse.

Part time employees can be excluded if work less than 1000 hours per year.

Any employee age 21 or older working for you at least two years must be included in the plan if vesting is 100% immediate (or one year if vesting is not 100% immediate)

Any employee age 21 or older working for you at least two years must be included in the plan if vesting is 100% immediate (or one year if vesting is not 100% immediate)

The tax information provided is for informational purposes only and is not intended, and should not be construed, as tax advice or a recommendation. You should consult with a professional tax advisor about your individual circumstances.

Get up to $600 cash credit for deposits or transfers made within 45 days of account opening. Follow these 2 easy steps:

1. Mail or fax your completed small business retirement plan application to us
2. Call Customer Service at 1-888-402-0654 once your account is open to be enrolled in and receive the offer.

Deposit or Transfer
Receive
$25K - $99,999
$200
$100K - $249,999
$300
$250K and above
$600*
And open an account with $10,000 or more and receive free stock & options trades for 60 days once funds become available.
*Call us to see how you can qualify for more at 1-800-ETRADE-1