Individual 401k
SEP IRA
SIMPLE IRA
SEP IRA
SIMPLE IRA
Safe Harbor 401k plan
Traditional 401k plan
Individual 401k | SEP IRA | SIMPLE IRA | Safe Harbor 401k | Traditional 401k | Profit Sharing Plan | |
---|---|---|---|---|---|---|
Business type | Businesses with no common-law employees and wanting to maximize contributions. | Any business willing to make all plan contributions and desires simplified plan administration. | Any business with 100 or less employees seeking a mix of employee and employer contributions. | A business that's able to make a required contribution and wants to allow all employees the opportunity to maximize salary deferrals. | A business that doesn't want required employer contributions and owners are not concerned with maximizing their contributions. | Any business willing to make all plan contributions and seeking simplified administration (e.g. no employee contributions). |
Key benefits | Offers Designated Roth Contributions or pre-tax contributions and loan privileges. | Operate with no annual costs or IRS filing requirements. | Operate with no annual costs or IRS filing requirements. Similar features to a 401k plan. |
Allows larger employee contributions due to required employer contributions. Designated Roth Contributions, automatic enrollment, and automatic increase features available. |
Designated Roth Contributions, automatic enrollment, and automatic increase features available. | Various allocation formulas available for employer contributions. Employer contributions can be subject to vesting schedule. Plan investments are typically directed by employer. |
Maximum total contributions per participant for tax years 2024 | Employee elective deferral of $23,000 or $30,500 if age 50 or older. Overall limit of 100% employee's compensation or $69,000 ($76,500 if age 50 or older with catch-up contributions). | Lesser of $69,000 or 25% of employee's compensation. | Employee elective deferral limit is $16,000 or $19,500 if age 50 or older. Employer must make a matching contribution up to 3% of compensation, or a non-elective of 2% of each eligible employee's compensation. | Employee elective deferral of $23,000 or $30,500 if age 50 or older. Overall limit of 100% employee's compensation or $69,000 (or $76,500 if age 50 or older with catch-up contributions). | Employee elective deferral of $23,000 or $30,500 if age 50 or older. Overall limit of 100% employee's compensation or $69,000 (or $76,500 if age 50 or older with catch-up contributions). | $69,000 |
Can there be a vesting schedule? | No | No | No | Yes, on "non-safe harbor" employer contributions. | Yes, on any employer contributions. | Yes |
Are loans an option? | Yes | No | No | Yes | Yes | Yes |
Additional plan information | IRS Form 5500 may be required. Annual administration fee required. |
No administrative costs or IRS annual filing requirements. No employee contributions. |
No administrative costs or IRS annual filing requirements. Annual administration fee required. |
IRS Form 5500 required. Annual administration fee required. |
IRS Form 5500 required. Annual administration fee required. |
IRS Form 5500 Required. |
Investment options | BlackRock and American Funds | BlackRock funds or State Farm Annuities | BlackRock funds | BlackRock and American Funds | BlackRock and American Funds | BlackRock and American Funds |
More info | Individual 401k | SEP IRA | SIMPLE IRA | Safe Harbor 401k | Traditional 401k |
Related links
Securities are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.
Securities distributed by State Farm® VP Management Corp.
BlackRock mutual funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). BlackRock is not affiliated with SFVPMC or any other entity mentioned herein. BlackRock is a registered trademark of BlackRock, Inc. SFVPMC is a separate entity from Capital Research and Management Company (CRMC) which is the investment adviser for the American Funds. American Funds securities are distributed through American Funds Distributors, Inc. All Capital Group trademarks referenced are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. Neither State Farm® nor its agents provide tax or legal advice. AP2024/03/0349