Small Business Retirement

Compare our small business retirement plans

  i401(k) SEP-IRA SIMPLE IRA Small Plan 401(k)

Plan sponsors and participants

Self-employed individuals or businesses with no common-law employees that want to maximize tax deferrals, including those interested in to a Roth 401(k) option.

Self-employed individuals or businesses that want to provide a retirement benefit to all employees (including themselves) solely through employer contributions.

Self-employed individuals or businesses with 100 or fewer employees that want to encourage employee contributions and provide an annual employer contribution.

Public and private companies with up to $50 million in assets that want to offer employees the tax savings and retirement benefits of a 401(k) plan.

Contributions

Employee: 

For 2021, up to $19,500, not to exceed 100% of compensation.

- Roth contributions are accepted.

Employer:

For 2021, up to 25%* of the employee’s compensation, not to exceed annual maximums. 

 

Maximum amount of employer plus employee contributions for 2021:

$58,000 

 

Catch up contributions for 2021:

An employee over age 50 can contribute an additional $6,500.

Employee:

None

 

Employer: 

For 2021, up to 25%* of the employee's compensation or $58,000, whichever is less.*

Employee:

For 2021, up to $13,500, not to exceed 100% of compensation.

 

Employer:

Match up to 3% of employee contributions 

— or —

An annual non-elective contribution of 2% of each eligible employee's compensation 

 

Catch up contributions for 2021:

Employees over age 50 can contribute an additional $3,000.

Employee: 

For 2021, up to $19,500, not to exceed 100% of compensation. 

 

Employer: 

- Can make matching, fixed, or profit sharing contributions. 

 

Employer plus employee contribution limits for 2021: 

2021: $58,000 

 

Catch up contributions for 2021:

Employees over age 50 can contribute an additional $6,500.

Investment choices

- More than 100 Vanguard mutual funds including many of our index funds with Admiral™ Shares.

SEP-IRA for one person: Any publically traded asset including Vanguard mutual funds and ETFs, as well as additional brokerage options.

 

SEP-IRA for more than one person: A variety of Vanguard mutual funds. Other types of investments are not eligible.

- More than 100 Vanguard mutual funds, including many of our index funds with Admiral™ Shares.

- Vanguard mutual funds

 

- Approximately 12,000 non-Vanguard funds*

 

- Company stock and self-directed brokerage accounts.

 

*For plans with $2 million or more in assets or plans using an advisor or investment fiduciary service.

Fees

- No plan setup fee

 

- An annual fee of $20 per fund per participant

 

- This fee can be waived under certain circumstances.

- No plan setup fee

 

SEP-IRA for one person: $20 annually

 

SEP-IRA for more than one person: An annual fee of $20 per fund, per participant

 

- This fee can be waived under certain circumstances.

- No plan setup fee

 

- An annual fee of $25 per fund, per participant

 

- This fee can be waived under certain circumstances.

- Onetime plan setup fee

 

- Annual fees based solely on the number of plan participants

Filing Requirements

Requires IRS filing

Doesn’t require IRS filing

Doesn’t require IRS filing

Requires IRS filing

 

Learn more about i401(k)

Learn more about SEP-IRA

Learn more about SIMPLE IRA

Learn more about Small plan 401(k)

Plan sponsors and participants

Self-employed individuals or businesses with no common-law employees that want to maximize tax deferrals, including those interested in to a Roth 401(k) option.

Contributions

Employee:  

For 2021, up to $19,500, not to exceed 100% of compensation.

- Roth contributions are accepted

Employer: 

For 2021, up to 25%* of the employee’s compensation, not to exceed annual maximums.  

Maximum amount of employer plus employee contributions for 2021: 

$58,000 

Catch up contributions for 2021:

An employee over age 50 can contribute an additional $6,500.

Investment Choices

- More than 100 Vanguard mutual funds including many of our index funds with Admiral™ Shares

Fees

- No plan setup fee

- An annual fee of $20 per fund per participant 

- This fee can be waived under certain circumstances.

Filing Requirements

Requires IRS filing 

 

Learn more about i401(k)

Plan sponsors and participants

Self-employed individuals or businesses that want to provide a retirement benefit to all employees (including themselves) solely through employer contributions.

Contributions

Employee:  

None.

Employer: 

For 2021, up to 25%* of the employee’s compensation, or $58,000, whichever is less.*

Investment Choices

SEP-IRA for one person: Any publically traded asset including Vanguard mutual funds and ETFs, as well as additional brokerage options.

SEP-IRA for more than one person: A variety of Vanguard mutual funds. Other types of investments are not eligible.

Fees

- No plan setup fee

SEP-IRA for one person: $20 annually.

SEP-IRA for more than one person: An annual fee of $20 per fund, per participant.

- This fee can be waived under certain circumstances.

Filing Requirements

Doesn’t require IRS filing  

 

Learn more about SEP-IRA

Plan sponsors and participants

Self-employed individuals or businesses with 100 or fewer employees that want to encourage employee contributions and provide an annual employer contribution.

Contributions

Employee:

For 2021, up to $13,500, not to exceed 100% of compensation.  

Employer:

Match up to 3% of employee contributions 

or — 

An annual non-elective contribution of 2% of each eligible employee's compensation.  

Catch up contributions for 2021:

Employees over age 50 can contribute an additional $3,000.

Investment Choices

- More than 100 Vanguard mutual funds, including many of our index funds with Admiral™ Shares. 

Fees

- No plan setup fee

- An annual fee of $25 per fund, per participant

- This fee can be waived under certain circumstances.

Filing Requirements

Doesn’t require IRS filing  

 

Learn more about SIMPLE IRA

Plan sponsors and participants

Public and private companies with up to $50 million in assets that want to offer employees the tax savings and retirement benefits of a 401(k) plan.

Contributions

Employee:  

For 2021, up to $19,500, not to exceed 100% of compensation.

Employer:  

- Can make matching, fixed, or profit sharing contributions

Employer plus employee contribution limits for 2021:

$58,000   

Catch up contributions for 2021: 

Employees over age 50 can contribute an additional $6,500.

Investment Choices

- Vanguard mutual funds

- Approximately 12,000 non-Vanguard funds*

- Company stock and self-directed brokerage accounts

*For plans with $2 million or more in assets or plans using an advisor or investment fiduciary service.

Fees

- Onetime plan setup fee

- Annual fees based solely on the number of plan participants

 

Filing Requirements

Requires IRS filing  

 

Learn more about Small plan 401(k)

*Self-employed individuals must calculate their maximum contribution using the rate table or worksheets in Chapter 6 of IRS Publication 560 Retirement Plans for Small Business, or see a tax advisor.

 

All investing is subject to risk, including the possible loss of the money you invest.