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 (2026) | Not required. Maximum contribution cannot exceed the lesser of 25% of compensation or $72,000 | Employer must make either a matching contribution or a nonelective contribution | Not required. Maximum contribution is 25% of compensation not to exceed $72,000 | Not required. The plan can provide a match or profit sharing contribution | Required
| Not required. Maximum contribution is 25% of eligible employee compensation not to exceed $72,000 | 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 (2026) | Not applicable | Yes, $17,000 (plus $4,000 catch-up contribution, if over 50) | Yes, $24,500 (plus $8,000 catch-up contribution, if over 50) | Yes, $24,500 (plus $8,000 catch-up contribution, if over 50) | Yes, $24,500 (plus $8,000 catch-up contribution, if over 50) | Not applicable | Not applicable | Not applicable | Yes, $24,500 (plus $8,000 catch-up contribution, if over 50) | Yes, up to $24,500 (special catch-up rules apply) |
| Contribution $ Limits (2026) | $72,000 | Depends on employer contribution method selected | $72,000 (plus $8,000 catch-up contribution) | $72,000 (plus $8,000 catch-up contribution) | $72,000 (plus $8,000 catch-up contribution) | $72,000 | Actuarily determined | Actuarily determined | $72,000 (plus $8,000 catch-up contribution) | $24,500 (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 |