Southern Tier Financial
Small Business Retirement Comparison Chart
Plan Type Applicable Businesses Maximum Contribution Comments
SEP
(Simplified Employee Pension)
IRA Based
Sole proprietorships, partnerships, and small businesses Employee: None. Contributions are generally by employer only. Maximum allowed: $49,000 Simple to establish and administer. No IRS filing is required.
SIMPLE IRA
IRA Based
Sole proprietorships, partnerships, limited liability companies, and corporations with 100 or fewer employees. Employee: The lesser of $11,500 for 2011, (indexed for inflation each year), or 100% of compensation. Additional contribution allowed for employees age 50 or above. Limited employer contribution required. Simple to establish and adminster. No IRS filing is required. Employee notification of right to pqarticipate is required.
Profit Sharing
Defined Contribution
Sole proprietorships, partnerships, limited liability companies, and corporations. See Comments Employer descretionary contribution only. Many plan designs available.
401(k) Defined Contribution
Defined Contribution
Corporation, partnerships, and limited liability companies. Employee: The lesser of $16,500 for 2011, (indexed for inflation each year), or 100% of compensation. Additional contribution allowed for employees age 50 or above. Employer contributions are optional. Subject to IRS 5500 filings. Requires top-heavy and non-discrimination testing.
Solo 401 (k)
Defined Contribution
Sole proprietorships with no eligible employees. $49,000/$54,500 if age 50 or older at year-end. High contribution limits.
Safe Harbor 401 (k)
Definied Contribution
Sole proprietorships, partnerships, limited liability companies, and corporations. Employee: The lesser of $16,500 for 2011, (indexed for inflation each year), or 100% of compensation. Additional contribution allowed for employees age 50 or above. Employer contributions are required. Subject to IRS 5500 filings. Top-heavy testing. Emplolyee notification requirements under Safe harbor.
SIMPLE 401 (k)
Defined Contribution
Sole proprietorships, partnerships, limited liability companies, and corporations with 100 or fewer eligible employees. Employee: the lesser of $11,500, for 2011, (indexed for infoation each year), or 100% of compensation. Additional contribution allowed for employees age 50 or above. Limited employer contribution required. Administration fees lower than other 401 (k)s.