| 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 |
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
|
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
|
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
|
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
|
*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.