Plan Comparison Charts
Compare business retirement plans
You know how it is important to find the right retirement plan for your business and employees. With all the different options available, though, it might be hard to know which one is right for you. See our charts below to help you determine which one best suits your business.
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Sole Proprietor/Small Business Retirement Plan Comparison |
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Feature |
Solo 401(k) – COUNTRY “k” Plan |
SEP |
SIMPLE IRA |
Small Business “k” |
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2010 maximum employer contribution
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Corporations - 25% of eligible compensation to a maximum of $49,000 (indexed) Sole Proprietors - 20% to a maximum of $49,000 (indexed).
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Corporations - 25% of eligible compensation to a maximum of $49,000 (indexed) Sole Proprietors - 20% to a maximum of $49,000 (indexed).
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3% of eligible compensation. (Two out of five years can be less than 3%)
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Employer contribution is required. There are two options:
3% non-elective contribution for all eligible employees
OR
Dollar-for-dollar matching contribution up to 4% of compensation for participating employees |
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2010 maximum employee deferral contribution
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$16,500 (indexed) or 100% of compensation, whichever is less
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N/A. Contributions are generally by employer only.
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$11,500 (indexed) or 100% of compensation, whichever is less.
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$16,500 (indexed) or 100% of compensation, whichever is less
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2010 annual catch-up contributions for those age 50 and older
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$5,500 (indexed)
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$0
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$2,500 (indexed)
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$5,500 (indexed)
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Loan Option |
Yes |
No |
No |
No |
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Other Qualified Retirement Plan Comparison |
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Defined Benefit Pension Plan |
Money Purchase Pension Plan |
Profit Sharing Plan |
Traditional 401(k) Plan |
Traditional 401(k) Plan with Roth Option |
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2010 annual employer contribution limits |
100% of compensation up to $195,000 per participant |
Total contribution limit is 25% of eligible payroll |
Total contribution limit of 25% of eligible payroll |
Total contribution limit is 25% of eligible payroll plus deferral contributions |
Total contribution limit is 25% of eligible payroll plus deferral contributions |
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2010 employee contributions |
Not applicable |
Not applicable |
Not applicable |
100% of compensation up to $16,500 (made with pre-tax dollars) Participants age 50 and older can contribute an additional $5,500
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100% of compensation up to $16,500 (choose to contribute with pre-tax or after-tax dollars) Participants age 50 and older can contribute an additional $5,500 |
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Tax deductibility of employer contributions |
Actuarially determined |
Limited to 25% of eligible compensation |
Limited to 25% of eligible compensation |
Limited to 25% of eligible compensation |
Limited to 25% of eligible compensation |
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Other employer contribution requirements |
Employer must contribute if funding is required.
The contribution amount is actuarially determined each year. |
Employer must contribute a fixed percentage of compensation each year. |
Employer may vary contribution from year to year.
The employer may opt not to make a contribution each year.
A contribution is not reliant on profits of the business.
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Employer may vary contribution from year to year, unless a safe harbor provision is selected.
The employer may opt to make a fixed contribution.
A contribution is not reliant on profits of the business. |
Employer may vary contribution from year to year, unless a safe harbor provision is selected.
The employer may opt to make a fixed contribution.
A contribution is not reliant on profits of the business. |
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Defined Benefit Pension Plan |
Money Purchase Pension Plan |
Profit Sharing Plan |
Traditional 401(k) Plan |
Traditional 401(k) Plan with Roth Option |
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Vesting |
Employer determines a vesting schedule at the implementation of the plan |
Employer determines a vesting schedule at the implementation of the plan |
Employer determines a vesting schedule at the implementation of the plan |
Vesting schedule may be applied to employer contributions
Participant contributions are always 100% vested |
Vesting schedule may be applied to employer contributions
Participant contributions are always 100% vested |
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Matching contributions |
Not applicable |
Not applicable |
Not applicable |
Variety of matching formulas available to meet employer’s needs |
Variety of matching formulas available to meet employer’s needs |
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Number of employees |
Any size |
Any size |
Any size |
Any size |
Any size |
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Withdrawals and Distribution requirements |
Allowed upon retirement, age 70 ½, disability, or death. Penalty of 10% generally applied for distributions made prior to age 59 ½ in addition to income tax on distributed amount |
Allowed upon retirement, age 70 ½, disability, or death. Penalty of 10% generally applied for distributions made prior to age 59 ½ in addition to income tax on distributed amount |
Allowed upon retirement, age 70 ½, disability, or death. Penalty of 10% generally applied for distributions made prior to age 59 ½ in addition to income tax on distributed amount |
Contribution and earnings withdrawals are subject to Federal and most State income taxes.
Distributions must begin the latter of turning age 70 ½ or no longer being actively employed. |
If at least age 59 ½ and the Roth account is held for at least five years, contribution and earnings withdrawals are not taxed.
Distributions must begin the latter of turning age 70 ½ or no longer being actively employed. |
| NOT FDIC-INSURED |
| May lose value No bank guarantee |
Investment management, retirement, trust and planning services provided by COUNTRY Trust Bank®. Please see our Terms and Conditions for more information about COUNTRY Trust Bank® and its affiliates.
| 2010-05-05 | /content/financial/insuranceInvestments/retirement/businessSolutions/planComparisonCharts.xml |
