Compare Retirement Plans
Choosing the right retirement plan isn't always as easy as
flipping a coin. There is an investment science and tax strategy behind all of it. Let us help you with our quick guide to business retirement plans below.
2020 Retirement Plans and Contribution Limits
Traditional 401(k)
Solo 401(k)
Maximum Employee Deferral Amount: 100% of income up to $19,500*
Roth Contributions are available within a deferral limit.
Catch-up Contributions (for plan participants age 50+) $6,000*
Employer contribution amounts are decided by the employer.
Vesting options are available.
Loans are available.
ADP/ ACP Testing applies.
Top Heavy Testing applies.
You can choose your investment providers or use Kerr Wealth Management integrated services.
Are comparable with Money Purchase and Profit Sharing plans.
*Indexed by the IRS
Profit Share Plans
Can amend to a Traditional 401(k).
Maximum Employee Deferral Amount: 100% of income up to $63,500 for defined contribution plans. (415(c) limit)
No Roth.
No catch up provision.
Vesting options are available.
Loans are available.
ADP/ ACP Testing does not apply.
Top Heavy Testing applies.
You can choose your investment providers or use Kerr Wealth Management integrated services.
Compatibility with Money Purchase or Profit Share does not exist.
*Indexed by the IRS
Defined Benefit Plan
Safe Harbor 401(k)
Can change to traditional 401(k)
Maximum Employee Deferral Amount: 100% of income up to $19,500*
Roth Contributions are available within a deferral limit.
Catch-up Contributions (for plan participants age 50+) $6,000*
Matching of 100%, up to 3% and 50% of the next 2%, or None elective contribution of 3% of compensation to all eligible participants.
Vesting is immediate - other options available.
Loans are available.
ADP/ ACP Testing does not apply.
Top Heavy Testing usually does not apply.
You can choose your investment providers or use Kerr Wealth Management integrated services.
Are comparable with Money Purchase and Profit Sharing plans.
*Indexed by the IRS
SIMPLE IRA
Elective deferral limit $13,500
Catch-up limit for individual age 50 and older $3,000
Maximum employer match ($1 for $1 match on the first 3% of employee compensation deferred).
Cash Balance Plan
Elective deferral limit $230,000
Can invest in a variety of investment options.
Elective deferral limit $230,000
Can invest in a variety of investment options.