| 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 2023, up to $22,500, not to exceed 100% of compensation. - Roth contributions are accepted. Employer: For 2023, up to 25%* of the employee’s compensation, not to exceed annual maximums.
Maximum amount of employer plus employee contributions for 2023: $66,000
Catch up contributions for 2023: An employee over age 50 can contribute an additional $7,500. |
Employee: None
Employer: For 2023, up to 25%* of the employee's compensation or $66,000, whichever is less.* |
Employee: For 2023, up to $15,500, not to exceed 100% of compensation.
Employer: Match up to 3% of employee's compensation — or — An annual non-elective contribution of 2% of each eligible employee's compensation Begining with tax year 2024, the contribution limits have been updated for both employee salary deferral and employer, please see What's a Simple IRA Plan & How To Invest In One for more details
Catch up contributions for 2023: Employees over age 50 can contribute an additional $3,500. |
Employee: For 2023, up to $22,500, not to exceed 100% of compensation.
Employer: - Can make matching, fixed, or profit sharing contributions.
Employer plus employee contribution limits for 2023: $66,000
Catch up contributions for 2023: Employees over age 50 can contribute an additional $7,500. |
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. |
Fees |
- No plan set up fee
$20 for each Vanguard mutual fund in each account. We'll waive the fee for all participants in the plan if at least one participant has at least $50,000 in qualifying Vanguard assets. |
- No plan setup fee
Single-participant SEP IRA plan (self-funded on Vanguard.com):: See Vanguard annual account service fees Multi-participant SEP IRA plan (funded by my employer on Small Business Online): $20 for each Vanguard mutual fund in each account. We'll waive the fee if you:
|
- No plan setup fee
$25 for each Vanguard mutual fund in each account. We'll waive the fee if you have at least $50,000 in qualifying Vanguard assets. |
- 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 2023, up to $22,500, not to exceed 100% of compensation. - Roth contributions are accepted Employer: For 2023, up to 25%* of the employee’s compensation, not to exceed annual maximums. Maximum amount of employer plus employee contributions for 2023: $66,000 Catch up contributions for 2023: An employee over age 50 can contribute an additional $7,500. |
Investment Choices - More than 100 Vanguard mutual funds including many of our index funds with Admiral™ Shares |
Fees - No plan setup fee - $20 for each Vanguard mutual fund in each account. We'll waive the fee for all participants in the plan if at least one participant has at least $50,000 in qualifying Vanguard assets. |
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 2023, up to 25%* of the employee’s compensation, or $66,000, 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 plan: See Vanguard annual account service fees SEP-IRA for more than one person: $20 for each Vanguard mutual fund in each account. We'll waive the fee if you have at least $50,000 in qualifying Vanguard assets. |
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 2023, up to $15,500, 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 2023: Employees over age 50 can contribute an additional $3,500. |
Investment Choices - More than 100 Vanguard mutual funds, including many of our index funds with Admiral™ Shares. |
Fees - No plan setup fee $25 for each Vanguard mutual fund in each account. We'll waive the fee if you have at least $50,000 in qualifying Vanguard assets. |
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 2023, up to $22,500, not to exceed 100% of compensation. Employer: - Can make matching, fixed, or profit sharing contributions Employer plus employee contribution limits for 2023: $66,000 Catch up contributions for 2023: Employees over age 50 can contribute an additional $7,500. |
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
|
See what Vanguard assets qualify
Eligibility is first calculated using qualifying assets for an individual client. We then combine the qualifying assets of clients sharing a residential address to determine final eligibility*.
Assets that qualify
- Any assets under management of Vanguard Personal Advisor Services.
- Vanguard mutual funds and Vanguard ETFs held by a client in certain personal accounts qualify. Personal account types include: individual non-retirement, education savings accounts, IRAs, Joint, Trust, Custodian, Guardian, UTMA, UGMA, Estate, Sole Proprietorship, and Single-Participant SEP IRA plans.
Note: Vanguard assets in a Vanguard 529 Plan, Vanguard Variable Annuity, Multi-participant SEP IRA plans, SIMPLE, i401k, 403(b), family partnership, family corporation, or employer-sponsored retirement plans for which Vanguard provides recordkeeping services may be included in determining eligibility if you also have a personal account holding Vanguard mutual funds or Vanguard ETFs. Assets held in other account types are not eligible to be included in service eligibility determination.
We review qualifications periodically
The qualification criteria (for example, asset levels) are reviewed periodically and could change at any time. Vanguard reserves the right to discontinue enrollment in any of these services or reassign any investor, without prior notification, to the appropriate service level if the investor fails to continue to meet the applicable qualification criteria. Vanguard reserves the right to amend or cancel selected features and benefits at any time without prior notification.
In addition, ongoing access by any particular investor to individual services, discounts, and exemptions is subject to periodic review and may be restricted based upon criteria established solely by Vanguard. While these services are complimentary, some underlying services may charge fees and expenses. Vanguard does not guarantee any level of service.
*Business addresses and other non-residential addresses are not eligible to be aggregated for purposes of determining services.
*Self-employed individuals must calculate their maximum contribution using the rate table or worksheets in Chapter 5 of IRS Publication 560 Retirement Plans for Small Business, or see a tax advisor.
**For plans with $2 million or more in assets or plans using an advisor or investment fiduciary service.
All investing is subject to risk, including the possible loss of the money you invest.