Retirement Plan Comparison

 

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)

 $15,500 $15,500 N/A $10,500

Roth 401(k) Contribution Option

 Yes within deferral limit Yes within deferral limit N/A No

Catch-up Contributions (for participants 50 or Older)

 $5,000 $5,000 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 $46,000 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
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.

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"Before using Paychex, it was very difficult for me to manage normal company dealings and also handle the accounting, payroll, and retirement obligations. Today, Paychex manages, almost effortlessly on my part, all these details."

- Christa C. MacLean, President
MacLean Surgical Instruments

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800-322-7292
Monday - Friday
8:00 a.m. - 8:00 p.m. ET

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