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 2024, up to $23,000, not to exceed 100% of compensation. - Roth contributions are accepted. Employer: For 2024, up to 25%* of the employee’s compensation, not to exceed annual maximums.
Maximum amount of employer plus employee contributions for 2024: $69,000
Catch up contributions for 2024: An employee over age 50 can contribute an additional $7,500. |
Employee: None
Employer: For 2024, up to 25%* of the employee's compensation or $69,000, whichever is less.* |
Employee: For 2024, up to $16,000, 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 2024: Employees over age 50 can contribute an additional $3,500. |
Employee: For 2024, up to $23,000, not to exceed 100% of compensation.
Employer: - Can make matching, fixed, or profit sharing contributions.
Employer plus employee contribution limits for 2024: $69,000
Catch up contributions for 2024: 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.
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- 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:
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- 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
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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
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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
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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
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Filing Requirements Requires IRS filing
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*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.