{"id":51,"date":"2021-03-12T19:16:53","date_gmt":"2021-03-12T19:16:53","guid":{"rendered":"http:\/\/eplapprw11.paychex.com\/blogtest\/?post_type=article&#038;p=51"},"modified":"2025-11-03T20:36:40","modified_gmt":"2025-11-03T20:36:40","slug":"comparison-of-common-retirement-plans","status":"publish","type":"article","link":"https:\/\/secure.eplanservices401k.com\/marketing\/article\/comparison-of-common-retirement-plans\/","title":{"rendered":"Comparison of Common Retirement Plans"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Contribution Detail Differences<\/h2>\n\n\n\n<p>Below, we have outlined key contribution details for each common retirement plan. For more information, see the comparison chart below.<\/p>\n\n\n\n<p><a class=\"btn btn--secondary\" href=\"http:\/\/eplapprw11.paychex.com\/blog\/wp-content\/uploads\/sites\/12\/2022\/12\/eplan-Comparison-of-Common-Retirement-Plans.pdf\" target=\"_blank\" rel=\"noopener\">View Full Comparison Chart<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">401(k) &#8211; Contribution Details<\/h2>\n\n\n\n<p><strong>Who Can Contribute?<\/strong><\/p>\n\n\n\n<p>Employee; employer contributions are optional<\/p>\n\n\n\n<p><strong>Employee Contributions<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$22,500 salary deferral allowed<\/li>\n\n\n\n<li>Additional $7,500 catch-up contribution (50 years or older)<\/li>\n\n\n\n<li>Contributions may be pretax or post-tax (Roth)<\/li>\n<\/ul>\n\n\n\n<p><strong>Employer Contributions<\/strong><\/p>\n\n\n\n<p>Employer contributions are optional<\/p>\n\n\n\n<p><strong>Maximum Annual Contribution Per Participant<\/strong><\/p>\n\n\n\n<p>Employer\/Employee Combined: Up to the lesser of 100% of compensation or $66,000 ($73,500 if 50 years or older)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Safe Harbor 401(k) &#8211; Contribution Details<\/h2>\n\n\n\n<p><strong>Who Can Contribute?<\/strong><\/p>\n\n\n\n<p>Employee and employer<\/p>\n\n\n\n<p><strong>Employee Contributions<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$22,500 salary deferral allowed<\/li>\n\n\n\n<li>Additional $7,500 catch-up contribution (50 years or older)<\/li>\n\n\n\n<li>Contributions may be pretax or post-tax (Roth)<\/li>\n<\/ul>\n\n\n\n<p><strong>Employer Contributions<\/strong><\/p>\n\n\n\n<p>Employer can either contribute:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Four methods of profit sharing allowed<\/li>\n\n\n\n<li>Mandatory 4% employer match (100% up to 3%, 50% on the next 2%)<\/li>\n<\/ul>\n\n\n\n<p>Or they can contribute:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>3% non-elective employer contribution.<\/li>\n\n\n\n<li>Match formula may be enhanced. (Note: Match can be applied to any deferral up to 6%)<\/li>\n<\/ul>\n\n\n\n<p><strong>Maximum Annual Contribution Per Participant<\/strong><\/p>\n\n\n\n<p>Employer\/Employee Combined: Up to the lesser of 100% of compensation or $66,000 ($73,500 if 50 years or older)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Simple IRA &#8211; Contribution Details<\/h2>\n\n\n\n<p><strong>Who Can Contribute?<\/strong><\/p>\n\n\n\n<p>Employee and employer<\/p>\n\n\n\n<p><strong>Employee Contributions<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$15,500 salary deferral allowed<\/li>\n\n\n\n<li>Additional $3,500 catch-up contribution (50 years or older)<\/li>\n\n\n\n<li>Post-tax (Roth) contributions are not available<\/li>\n<\/ul>\n\n\n\n<p><strong>Employer Contributions<\/strong><\/p>\n\n\n\n<p>Employer can either contribute:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mandatory 3% employer match \u2013 three out of five years (1% minimum required for other two years)<\/li>\n<\/ul>\n\n\n\n<p>Or they can contribute:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>2% non-elective employer contribution<\/li>\n\n\n\n<li>Additional employer contribution is not allowed<\/li>\n<\/ul>\n\n\n\n<p><strong>Maximum Annual Contribution Per Participant<br><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employee: $15,500 (if 50 years or older, an additional $3,500 allowed)<\/li>\n\n\n\n<li>Employer: Must make matching contributions up to 3% of employee compensation or contribute 2% of total eligible employee compensation (Maximum compensation limit is $330,000 in 2023)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">SEP IRA &#8211; Contribution Details<\/h2>\n\n\n\n<p><strong>Who Can Contribute?<\/strong><\/p>\n\n\n\n<p>Employer<\/p>\n\n\n\n<p><strong>Employee Contributions<\/strong><\/p>\n\n\n\n<p>None\u2014contributions are generally by employer only<\/p>\n\n\n\n<p><strong>Employer Contributions<\/strong><\/p>\n\n\n\n<p>Employer can decide whether to make contributions year-to-year<\/p>\n\n\n\n<p><strong>Maximum Annual Contribution Per Participant<\/strong><\/p>\n\n\n\n<p>Up to 25% of compensation (Maximum compensation limit is $330,000 in 2023), but no more than $66,000<\/p>\n\n\n\n<p>For more information, see the comparison chart below:<\/p>\n\n\n\n<p><a class=\"btn btn--secondary\" href=\"http:\/\/eplapprw11.paychex.com\/blog\/wp-content\/uploads\/sites\/12\/2022\/12\/eplan-Comparison-of-Common-Retirement-Plans.pdf\" target=\"_blank\" rel=\"noopener\">View Full Comparison Chart<\/a><\/p>\n\n\n","protected":false},"featured_media":1805,"template":"","categories":[10,11],"tags":[],"class_list":["post-51","article","type-article","status-publish","has-post-thumbnail","hentry","category-article","category-for-individuals"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Comparison of Common Retirement Plans - ePlan Services<\/title>\n<meta name=\"description\" content=\"Do you understand you retirement options? 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