Compare Your Options

The chart below is designed to assist you in determining the best retirement plan for you and your company. All of our retirement plans are designed to help small business owners save for retirement while reducing taxes. They offer you the opportunity for both tax-deductible contributions and tax-deferred growth.

For more information on retirement plans for small businesses, please contact our Retirement Plan Services at 1-800-222-8222 or click here to learn how to get started.

SMALL PLAN OPTIONS

SEP SIMPLE 403(b) Salary Deferral Plan
Eligible Employers
All employers, including sole proprietors, partnerships, and corporations. Employers with 100 or fewer employees with $5,000 or more in compensation for the preceding year. Public Educational Organizations and any tax-exempt organization described in Section 501(c)(3) of the Internal Revenue Code. (Most hospitals, churches, educational institutions, and certain nonprofit organizations are included.)
Contribution Limits

Employer:  0-25% of compensation up to $52,000 for each eligible employee in 2014.

Employee: 100% of compensation up to $12,000 in 2014.
Employer: Additional $12,000 maximum per year based on a 100% matching contribution capped at 3% of employee compensation.

If you are age 50 or older, you may be eligible for a catch-up contribution of $2,500.

 

Employee:  100% of includible compensation up to $17,500 in 2014.

If you are age 50 or older, you may be eligible for a catch-up contribution of $5,500.

Required Employer Contributions
None. Employer must contribute either:

1. A 100% matching contribution capped at 3% of employee compensation. (Lower cap but not below 1% may be elected in 2 out of 5 years), or

2. A 2% non-elective contribution for each eligible employee. (Based on the first $260,000 of compensation in 2014.)

Note: No additional contributions may be made to the plan.

None.
Are Employees Allowed to Contribute?
No. Yes.

Yes.

Required Employee Eligibility
Age 21 with service in 3 of the last 5 years.

Employees who:

1. Received at least $5,000 in compensation during any 2 preceding years, and

2. Are reasonably expected to receive at least $5,000 in compensation during the current year.

Any employee is eligible as long as their employer is making section 403(b) salary reduction contributions available.
Deadline for Establishing a Plan
Due date for filing the company's income tax return plus extensions (usually April 15). October 1 of the year the first contribution will be made. N/A
Contribution Deadline
Due date for filing the company's income tax return plus extensions. Employee contributions are made through salary deferrals.

Employer contributions can be made up to the due date for filing the company's income tax return plus extensions.

Contributions are made through salary deferrals.
Vesting
100% vested at all times. 100% vested at all times.

100% vested at all times.

Key Benefits
Inexpensive.

Flexible Contributions.

No Annual Form 5500 Filing.

No Discrimination Testing.

High Contribution Limits.

Inexpensive.

No Annual Form 5500 Filing.

No Discrimination Testing.

Inexpensive.

No Annual Form 5500 Filing.

No Discrimination Testing.

DEFINED CONTRIBUTION (KEOGH) PLANS

Profit Sharing
Money Purchase Plan
Eligible Employers
All employers, including sole proprietors, partnerships, and corporations. All employers, including sole proprietors, partnerships, and corporations.
Contribution Limits

0-25% of compensation annually up to $52,000 per eligible employee in 2014.

1-25% of compensation annually up to $52,000 per eligible employee in 2014.

Required Employer Contributions
No. Yes.
Are Employees Allowed to Contribute?
No. No.
Required Employee Eligibility
Age 21 with 2 years of service; 1 year if there is a vesting schedule. Age 21 with 2 years of service; 1 year if there is a vesting schedule.
Deadline for Establishing a Plan
Plan and Trust must be established by the employer's fiscal year end (usually by December 31). Plan and Trust must be established by the employer's fiscal year end (usually by December 31).
Contribution Deadline
Due date for filing the company's income tax return plus extensions. Due date for filing the company's income tax return plus extensions.
Vesting
Various vesting schedules allowed. Various vesting schedules allowed.
Required Reporting

Possible 5500 Filing.

Possible 5500 Filing.

Key Benefits
Maximum contributions allowed.

Flexible contributions.

Maximum contributions allowed.

The chart above is a review of retirement plans for small businesses. These plans allow employees to make pretax contributions through payroll deductions.

  • Not FDIC Insured
  • No Bank Guarantee
  • May Lose Value

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