Compare Small Business Plans

  Invesco Solo 401(k)® SEP IRA SIMPLE IRA
KEY FEATURES
Can employer sponsor other qualified retirement plans
 
 
 
Minimal paperwork & reporting  
 
 
Full-service recordkeeping recommended
 
   
Loan option allowed
 
   
Mandatory employer contributions    
 
Employer contributions can vary with cash flow
 
 
 
Who can contribute Employee; employer contributions optional Employer Employee and employer
Who generally adopts Sole proprietorships, partnerships, limited liability companies and corporations with no employees other than owner's spouse Sole proprietorships, partnerships, and small businesses Sole proprietorships, partnerships, and small businesses with 100 or fewer eligible employees
ANNUAL EMPLOYER CONTRIBUTIONS
Maximum annual employer contribution 1 25% of eligible employee compensation 25% of eligible employee compensation 100% up to 3% match to participants or 2% to all eligible participants
Required match or profit sharing contribution    
 
EMPLOYEE PRETAX CONTRIBUTIONS
2014 Maximum Employee deferral contribution $17,500 or 100% of compensation N/A $12,000 or 100% of compensation
2015 Maximum Employee deferral contribution $18,000 or 100% of compensation N/A $12,500 or 100% of compensation
2014 Catch-up contribution (age 50 & older) $5,500 N/A $2,500
2015 Catch-up contribution (age 50 & older) $6,000 N/A $3,000
ANNUAL FEES
$15 per participant, drafted automatically 3
 
 
 

1 If self-employed, compensation is earned income.

2Annual compensation limit: $260,000 in 2014, $265,000 in 2015. Calculations of maximum total plan contributions and participant limits are complex and require knowledge of IRS regulations. Consult your tax advisor.

3Annual fee is waived for account balances of $50,000 or more. This information does not constitute tax advice.

Please consult your tax advisor about your particular situation.