An easy retirement plan guide for small employers

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Type of Plan
	Payroll Deduction IRA	SEP	SIMPLE IRA	Safe Harbor 401(k)	401(k)	Profit- Sharing	Defined Benefit	403(b)	457(b)
Setting Up and Operating a Plan
May use IRS Model Form as plan document	No	Yes	Yes	No	No	No	No	No	No
Annual return required	No	No	No	Yes	Yes	Yes	Yes	Yes	Yes
Annual nondiscrimination testing	No	No	No	Yes	Yes	Yes	Yes	Yes1	No
Plan Assets
Invested in IRAs	Yes	Yes	Yes	Other2	Other2	Other2	Other2	Other2	Other2
Maximum Contributions
Employee contributions3	Up to $5,500	0	Up to $12,000	Up to $17,500	Up to $17,500	0	0	Up to $17,500	Up to $17,500
Employer contributions3	0	Optional4	Required5	Required5	Optional4	Optional4	Yes6	Optional4	Up to $17,5007
Age 50+ catch-up contributions3	Up to $1,000	0	Up to $2,500	Up to $5,500	Up to $5,500	0	0	Up to $5,500	Up to $17,5008
Accessibility
Loans allowed	No	No	No	Yes	Yes	Yes	Yes	Yes	Yes8
Hardship withdrawals allowed	Yes9	Yes9	Yes9	Yes	Yes	Yes	No	Yes	Yes

¹ Only required if plan has employer contributions but never for government plans.

² Other - Generally, the plan's assets are held in a tax-exempt trust, though they can also be held in custodial accounts and annuity contracts.

³ All Dollar limits are for 2013 and subject to cost-of-living adjustments in future years (except the age 50+ catch-up contributions for Payroll Deduction IRAs).

⁴ Employer may contribute to an employee's retirement account but the total employer and employee contributions may not for 2013 exceed 100% of the employee's compensation, or $51,000 or more if additional contributions permitted by plan (age 50+ catch-up contributions, 15 or more years of service or 3 years prior to normal retirement age). In a 403(b) plan, compensation means the employee's includible compensation. 

⁵ Required  - The amount an employer must deposit into the plan on behalf of an employee must either be a matching contribution that equals a certain portion or percentage of the employee's contributions or a minimum nonelective contribution to all plan participants. The amount of the required employer contributions vary depending on the plan.

⁶ The amount of an employer's annual contributions are determined by an actuary.

⁷ The maximum combined employer and employee contributions are for 2013 the lesser of 100% of an employee's includible compensation, or $17,500 or more if additional contributions permitted by plan (age 50+ catch-up contributions or 3 years prior to normal retirement age). 

⁸ Only applies to government plans.

⁹ Withdrawals may be made at any time, subject to tax