| |
401
(k) |
Simple
IRA |
SEP's |
Pension
/ Profit Sharing |
|
Suitable
for: |
Sole
Proprietorships
Partnerships
Corporations |
Sole
Proprietorships
Partnerships
Corporations |
Sole
Proprietorships
Partnerships
Corporations |
Sole
Proprietorships
Partnerships
Corporations |
| |
|
Business
Size: |
25
Employees of larger |
100
employees or less |
Very
small |
Small
to medium-sized |
| |
|
Tax
Benefits to Business Owner: |
Current
tax deductions
Tax-deferred growth
Tax-favored distributions |
Current
tax deductions
Tax-deferred growth
Tax-favored distributions |
Current
tax deductions
Tax-deferred growth
Tax-favored distributions |
Current
tax deductions
Tax-deferred growth
Tax-favored distributions |
| |
|
Pre-Tax
Contributions by Employees: |
Yes |
Yes |
No |
No |
| |
|
Distinguishing
Advantages: |
A
flexible type of plan that can keep the business
owner’s expenses low because it allows
employees to contribute to the plan with pre-tax
dollars |
A
tax-advantaged salary deferral program that is
simple and inexpensive to administer |
Has
many of the features and benefits of profit
sharing plans, but with an emphasis on
simplicity and low expense |
Includes
four basic types of plans, with various degrees
of simplicity, flexibility and size of available
tax-deductible contributions to meet the needs
of a wide range of business owners of different
ages with different-sized businesses |
