Let’s take a look at some of the most common retirement plans that small businesses can offer.

401(k)

401(k) plans are the most popular retirement plan among other options. They allow employees to defer a portion of their salary to their retirement accounts. Solo 401(k) plans are also great options if you are a sole proprietor.

Please note that filing a Form 5500 is required by an employer.

Employee Contributions	Yes
Employer Contributions	Yes (optional)
Contribution Limit	Yes

SIMPLE IRA

This allows employees and employers to contribute to a traditional individual retirement arrangements set up for the employee. SIMPLE IRA is only available to employers with fewer than 100 employees, and to employees who earned at least $5,000 in compensation during any two preceding calendar years.

Employee Contributions	Yes (optional)
Employer Contributions	Yes (mandatory)
Contribution Limit	Yes

SEP IRA

This is mainly designed for self-employed individuals and small business owners who want to provide retirement benefits to themselves and their employees.

Employee Contributions	No
Employer Contributions	Yes (mandatory)
Contribution Limit	Yes

It is important to consult a retirement plan broker to ensure you offer the best solution for your employees or yourself as a business owner.