QRP, 401k, Solo 401(k), SEP-IRA, SIMPLE-IRA Max Contribution Comparison
Self-employed individuals and businesses employing only the owner, partners and spouses have several options for tax-advantaged savings: an Individual 401(k) plan, a SEP IRA, a SIMPLE IRA, or a Profit Sharing plan. Each option has distinct features and amounts that can be contributed to the plan each year. Use the Individual 401(k) Contribution Comparison to estimate the potential contribution that can be made to an Individual 401(k) compared to Profit Sharing, SIMPLE, or SEP plan.Helpful IRS QRP & 401k Annual Contribution Resources:
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Retirement Topics – 401(k) and Profit-Sharing Plan Contribution Limits
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Self-Employed Individuals – Calculating Your Own Retirement-Plan Contribution and Deduction
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Retirement Topics – What Happens When an Employee has Elective Deferrals in Excess of the Limits?
- 401(k) Plan Fix-It Guide – Elective deferrals weren’t limited to the amounts under IRC Section 402(g) for the calendar year and excesses weren’t distributed
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Issue Snapshot – 401(k) Plan Catch-up Contribution Eligibility
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Issue Snapshot – Consequences to a Participant Who Makes Excess Deferrals to a 401(k) Plan