Company Retirement Plan Comparison

	SEP IRA (Simplified Employee Pension)	SIMPLE IRA (Savings Incentive Match Plan	Solo 401(k)	401(k) Plan	Safe Harbor 401(k) Plan	Profit Sharing Plan	Cash Balance Plan	Defined Benefit Plan	403(b) Plan	457(b) Tax Deferred Funded Plans
Plan Type	IRA Based	IRA Based	Defined Contribution	Defined Contribution	Defined Contribution	Defined Contribution	Defined Benefit	Defined Benefit	Defined Contribution	Defined Contribution
Ideal for	Companies that do not want the costs of a qualified plan. The company is willing to fund 100% of the plan contributions.	Companies with fewer than 100 employees that do not want the costs of a qualified plan.	Company with no eligible employees.	Companies wanting a plan that allows employee elective salary deferrals and the possibility for employer contributions.	Companies who wish to avoid ADP/ACP and top-heavy discrimination tests.	Companies that wish to contribute beyond the limits of a 401(k) plan - often designed to benefit owners and key executives in a tax advantageous manner.	Companies that wish to contribute significantly more than defined contribution plans generally benefiting owners in a tax advantageous manner.	Same characteristics as cash balance plan with participant statements reflected as monthly income at retirement.	For certain employees of public schools, employees of certain Code Section 501(c)(3) tax-exempt organizations and certain ministers.	The organization must be a state or local government or a tax-exempt organization under IRC 501(c).
Employer Contribution Limits (2023)	Not required. Maximum contribution cannot exceed the lesser of 25% of compensation or $66,000	Employer must make either a matching contribution or a nonelective contribution	Not required. Maximum contribution is 25% of compensation not to exceed $66,000	Not required. The plan can provide a match or profit sharing contribution	Required 1. 100% on the first 3% plus 50% on the next 2% of employee compensation OR 2. 3% of compensation to all eligible employees	Not required. Maximum contribution is 25% of eligible employee compensation not to exceed $66,000	Required - contribution amounts are calculated based on age, compensation and other actuarial factors	Required - contribution amounts are calculated based on age, compensation and other actuarial factors	Not required. The plan can provide a match or profit sharing contribution	Not required
Employee Contribution Limits (2023)	Not applicable	Yes, $15,500 (plus $3,500 catch-up contribution, if over 50)	Yes, $22,500 (plus $7,500 catch-up contribution, if over 50)	Yes, $22,500 (plus $7,500 catch-up contribution, if over 50)	Yes, $22,500 (plus $7,500 catch-up contribution, if over 50)	Not applicable	Not applicable	Not applicable	Yes, $22,500 (plus $7,500 catch-up contribution, if over 50)	Yes, up to $22,500 (special catch-up rules apply)
Contribution $ Limits (2023)	$66,000	Depends on employer contribution method selected	$66,000 (plus $7,500 catch-up contribution)	$66,000 (plus $7,500 catch-up contribution)	$66,000 (plus $7,500 catch-up contribution)	$66,000	Actuarily determined	Actuarily determined	$66,000 (plus $7,500 catch-up contribution)	$22,500 (special catch-up rules apply)
Last Date for Contributions	Due date of employer's tax return (including extensions)	Salary Deferral: As soon as administratively feasible, but in no event later than 30 days after the end of the month for which the contributions are to be made Employer Contribution: Due date of the employer's tax return (including extensions)	Salary Deferral: If incorporated, no later than seven business days from payroll withholding (DOL safe harbor rule). If unincorporated, generally by the 2nd week of January after year-end. Employer Contribution: Due date of the employer's tax return (including extensions)	Salary Deferral: If incorporated, no later than seven business days from payroll withholding (DOL safe harbor rule). If unincorporated, generally by the 2nd week of January after year-end. Employer Contribution: Due date of the employer's tax return (including extensions)	Salary Deferral: If incorporated, no later than seven business days from payroll withholding (DOL safe harbor rule). If unincorporated, generally by the 2nd week of January after year-end. Employer Contribution: Due date of the employer's tax return (including extensions)	Due date of the employer's tax return (including extensions) to be eligible for a tax deduction for the prior year	No later than 8 ½ months after the end of the Plan year	Contributions: On or before employer’s due date for filing federal tax returns (including extensions)	If employer contributions are allowed, the same rules apply as 401(k) Plans. If only salary deferrals, then generally as soon as administratively feasible	Salary Deferral: As soon as administratively feasible. Employer contribution: Employer’s discretion
Plan Setup Deadline	Anytime up to the due date of employer's tax return (including extensions)	Anytime between January 1st and October 1st of the calendar year. As soon as administratively feasible for new employers coming into existence after October 1st	By the last day of the plan year for which the plan is effective	By the last day of the plan year for which the plan is effective	Any date between January 1st and October 1st - may not have an effective date that is before date plan was actually adopted	Employer's tax filing due date (including extensions)	Employer's tax filing due date (including extensions)	Employer's tax filing due date (including extensions)	If employer contributions allowed, by the last day of the Plan year for which the Plan is effective	The date the Plan is effective
Form Used to Establish Plan	5305-SEP or SEP paperwork provided by financial institution	5304-SIMPLE (employees select financial institution) or 5305-SIMPLE (employer selects a single financial institution)	Plan document	Plan document	Plan document	Plan document	Plan document	Plan document	Plan document if employer contributions are allowed; otherwise, can be established using forms and agreements of financial institution	Generally a Plan document