Every Small Business is Different
A company retirement plan may help you and your staff save for retirement, receive tax credits and other incentives, and attract and keep better employees.
401K
- Contributions: Employee & optional employer match or discretionary contributions.
- Employee Contribution Limits: Lesser of 100% of participants compensation of $24,500 ($32,500 age-based catch-up contributions, age 50-59 or 64 and older) ($35,750 age based catch-up contributions, age 60-63).
- Investment Decisions: Employee.
- Vesting: Employer contributions may be subject to a schedule.
- Maintenance: Form 5500 annually, other annual notices.
Simple IRAs
- Contributions: Employee & mandatory employer match up to 3% of compensation or across the board 2% for all eligible employees.
- Employee Contribution Limits: Employee deferral up to $17,000. ($21,000 for ages 50-59 or 64 and older) ($22,250 for ages 60-63).
- Investment Decisions: Employee.
- Vesting: Immediate.
- Maintenance: Annual required notice.
SEP IRAs
- Contributions: Employer only (discretionary).
- Employee Contribution Limits:
Maximum percentage of compensation: 25%. (Minimum contribution dollar amount of $800. Maximum contribution dollar amount of $72,000) Payroll Deduction IRA’s: $7,500 ($8,600 for ages 50 or older). - Investment Decisions: Employee.
- Vesting: Immediate.
- Maintenance: None.
Payroll Deduction IRAs
- Contributions: Employees only.
- Employee Contribution Limits: $6,000 ($7,000 for age 50 & older).
- Investment Decisions: Employee.
- Vesting: Immediate.
- Maintenance: None.
Retirement Plan Comparison
| PLAN | CONTRIBUTIONS | EMPLOYEE CONTRIBUTION LIMITS | INVESTMENT DECISIONS | VESTING | MAINTENANCE |
|---|---|---|---|---|---|
| 401K |
Employee & optional employer match or discretionary contributions.
|
Lesser of 100% of participants compensation of $24,500 ($32,500 age-based catch-up contributions, age 50-59 or 64 and older) ($35,750 age based catch-up contributions, age 60-63).
|
Employee
|
Employer contributions may be subject to a schedule.
|
Form 5500 annually, other annual notices.
|
| SIMPLE IRAs |
Employee & mandatory employer match up to 3% of compensation or across the board 2% for all eligible employees.
|
Employee deferral up to $17,000. ($21,000 for ages 50-59 or 64 and older) ($22,250 for ages 60-63).
|
Employee
|
Immediate
|
Annual required notice.
|
| SEP IRAs |
Employer only (discretionary).
|
Maximum percentage of compensation: 25%. (Minimum contribution dollar amount of $800. Maximum contribution dollar amount of $72,000) Payroll Deduction IRA’s: $7,500 ($8,600 for ages 50 or older).
|
Employee
|
Immediate
|
None
|
| PAYROLL DEDUCTION IRAs |
Employees only.
|
$6,000 ($7,000 for age 50 & older).
|
Employee
|
Immediate
|
None
|
LPL Financial Referral Disclosure
Blackhawk Community Credit Union provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay Blackhawk Community Credit Union for these referrals. This creates an incentive for Blackhawk Community Credit Union to make these referrals, resulting in a conflict of interest. Blackhawk Community Credit Union is not a current client of LPL for advisory services. Please visit the LPL Relationship Disclosure for more detailed information.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA and SIPC). Insurance products are offered through LPL or its licensed affiliates. Blackhawk Community Credit Union and Blackhawk Wealth Management Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Blackhawk Wealth Management Services, and may also be employees of Blackhawk Community Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Blackhawk Community Credit Union or Blackhawk Wealth Management Services. Securities and insurance offered through LPL or its affiliates are:
