Retirement Plans Rundown

As an employer, a company retirement plan may help you:

  • Save for your own retirement
  • Potentially receive tax credit and other incentives from the federal government
  • Attract—and keep—better employees
Apply For A Company Retirement Plan

Ready to get started creating a small business retirement plan for you and your employees? Connect with a CFS* Financial Advisor.

Company Retirement Plan Options


Features of a SEP IRA retirement plan:

  • Low cost
  • Employer contributions are deductible business expenses
  • Flexible contribution limits; you decide how much to contribute
  • Annual contributions are not required
  • Easy setup and administration
  • Minimum paperwork; no complex IRS reporting requirements

What are SEP IRAs?
SEP IRAs are retirement plans designed for business owners, self-employed individuals, or anyone who earns freelance income while holding a job. As the employer, you would generally be the sole contributor to this retirement plan, making it perfect for business owners or anyone who is self-employed, as opposed to being employed at an existing business.

Maximum contributions to your SEP can change depending on the tax year, but you can contribute up to 25% of your total pay, or $66,000 as of the 2023 tax year.


Features of a SIMPLE IRA plan:

  • Low cost
  • Employees contribute to their own accounts
  • Employer match is a tax-deductible business expense
  • Easy setup and administration
  • No complex IRS reporting requirements

What is a simple IRA?
Simple IRA retirement plans allow both employees and employers to contribute to a traditional IRA retirement plan, allowing for the employees’ savings to grow even more quickly depending on the options of the chosen plan.

What is the difference between a SEP and a simple IRA?
While both of these plans allow for contributions into a retirement fund, simple IRAs allow for both the employee and employer to contribute to the fund, whereas IRAs only allow for employers to make contributions.

401(k) Plans

Features of a 401(k) plan:

  • Employees contribute to their own accounts
  • Employer contributions (including match), if any, are deductible business expenses
  • Flexible program designs to suit employer needs

What is a 401(k)?
401(k) plans are company-sponsored accounts designed for retirement savings. The employees are the primary contributor to these accounts, while employers can opt in to match their contributions.

Payroll Deduction IRAs

Features of a payroll deduction IRA program:

  • Low cost
  • Employee contributions are automatically deducted from their paychecks to their own accounts
  • Easy setup and administration
  • No complex IRS reporting requirements

What is a payroll deduction IRA?
A payroll deduction IRA is an IRA established at a financial institution where the employee deducts an automatic payroll deduction into this IRA. These deductions occur once every pay period, and can be adjusted up or down as the employee’s needs change.