Retirement Plan Comparison

Retirement Plan Comparison
IRA Simple IRA SEP IRA Solo 401(k) Defined Benefit
Who can open Anyone under the age of 70 ½ Employer with max 100 employees Any employer Self-employed with no employees except spouse Any employer
Cost and Complexity Low Low Low Medium High
Employer contribution limit N/A 3% of employee’s pay or 2% nonelective 25% of employee income up to $53,000 $18,000 (plus $6,000) deferral plus 25% of compensation; $53,000 max ($59,000 for 50 and over) N/A
Employee contribution limit $5,500 plus $1,000 $12,500 plus $3,000 N/A N/A N/A