Retirement Plan Comparison
Professional Employer Organization (PEO)
Feature |
Traditional 401(k) |
401(k) Safe Harbor |
Profit Sharing |
Simple IRA |
Can Amend to a Traditional 401(k) |
N/A |
Yes |
Yes |
No |
Maximum Employee Deferral* (for pretax and Roth) |
$16,500 |
$16,500 |
N/A |
$11,500 |
Roth 401(k) Contribution Option |
Yes within deferral limit |
Yes within deferral limit |
N/A |
No |
Catch-up Contributions (for participants 50 or Older) |
$5,500 |
$5,500 |
N/A |
$2,500 |
Employer Contribution |
Employer option |
Tiered match
- 100% up to 3% and 50% of the next 2%, 4% maximum; or
- Non-elective contribution of 3% to all eligible participants
|
Discretionary, 25% up to $49,000 per individual* |
100% up to 3%; or 2% non-elective contribution |
Vesting |
Options available |
Immediate (Safe Harbor contributions)
Options available (other contributions) |
Options available |
Immediate |
Loans |
Yes |
Yes |
Yes |
No |
ADP/ACP Testing |
Yes |
No |
No |
No |
Top-Heavy Testing |
Yes |
Generally satisfied |
Yes |
No |
Investment Providers |
Choice of many |
Choice of many |
Choice of many |
Single |
Compatible with Money Purchase and Profit Sharing Plans |
Yes |
Yes |
N/A |
No |
|
| * Limit indexed annually by the IRS |
Free Web Seminar
Attend a FREE Web seminar and learn what every business should know about 401(k) plans.
Learn More
Other 401(k) and Retirement Services
For more information about our products and services, please contact a Paychex representative at 800-322-7292, Monday through Friday from 8:00 a.m. to 8:00 p.m. ET. Or, complete our online form for a no-obligation quote.
Professional employer organization (PEO) services are sold and provided by Paychex Business Solutions, Inc. (PBS) and its affiliates, which are registered and licensed as required to sell and provide PEO services, including in Florida. PBS FL license numbers are GL7, GM46, and GM14.
Notify Me of New Seminars
Printable Version
Email an Associate
