Best Self-Employed Retirement Plans | Small Business IRAs

Small Business and Self-Employed Retirement Plan Options

Whether you own a small business with a few employees, are self-employed with no employees, are an entrepreneur, or do freelance work, you can establish a retirement plan. There is a plan out there for everyone; it’s just a matter of finding the right fit.

Solo 401(k)

Also known as Solo-k, Uni-k, One-participant k, and Individual-k is best for small business owners and any spouse who works for this business.

SEP IRA

The Simplified Employee Pension (SEP) is primarily used for self-employed or small businesses with or without employees.

SIMPLE IRA

A Savings Incentive Match Plan for Employees (SIMPLE) is usually considered by small businesses with less than 100 employees.

See How These Plans Compare

Self-Directed Business Retirement Plan Start-Up Fees

Custodians typically charge fees for a variety of services. Common costs include an account establishment fee, annual fees, and transaction fees. Some charge account fees based on the value of the assets, but this can be costly over time. As your investments grow, so does your annual bill. Instead, consider paying a flat fee for your plan.

When Shopping for Fees...

If you need a calculator to figure out your plan cost, beware. The 100% all-inclusive plan may not be all inclusive at all. Read the fine print.

SEP IRA

Annual fee includes one asset.

$199 /yr

Additional assets $75/each

Learn more >

SIMPLE IRA

Annual fee includes one asset.

$199 /yr

Additional assets $75/each

Learn more >

Solo 401(k)

Annual fee includes plan document, all premium features, and recordkeeping platform.

$899 /yr

No additional fees.

Learn more >

Moving Your Small Business Retirement Plan to IRAR

There are many reasons why a small business owner may want to move their retirement account to a different custodian: fees, services, and investments allowed. Other common reasons include that a custodian has moved on, been acquired, or closed up shop.

Whatever the reason, moving a plan is not hard, but it does need to be done correctly. When, where, and how to move a SEP or SIMPLE is important. When moving a Solo 401(k), there is a difference between terminating a plan and the “restatement” of a plan. Talk to us, and we can walk you through the process.

Allocating the contributions, withdrawals, loans, and asset income properly within the plan also needs to be done accurately.

At IRAR, we make it easy. We have all the tools needed for you to record keep your account easily and without the need of spreadsheets.

Download

Transfer Rollover Guide

Start a Plan Today

As a small business owner, it is essential for you to take the initiative and encourage your employees to save for retirement. Demonstrating the importance of this will go a long way to setting a positive example. It is important to note that even if you are unable to save a large amount, saving something is preferable to saving nothing at all.

Tax-Deductions, Salary Deferrals, and More!

From larger contribution amounts to investments you understand— the benefits are many.

With an IRAR small business retirement plan, you can lower your taxable income as well as take tax credits for establishing a plan.

Get started today.

Get started

Open a Self-Directed Plan

From 0-100 Employees— You Have Options.

Self-employed people and small business owners might not think that they have many options when it comes to saving for their retirement. But they might be surprised to learn that there are many retirement tools available to them.

Small Business Plan Comparison & Annual Contribution Limits

Key Features

Solo 401(k)

SEP IRA

SIMPLE IRA

Number of employees allowed

Owner(s) and spouse(s) only

Business owner and employees

Business owner and employees (max. 100)

Employer contributions are allowed

Yes

Employee contributions are allowed

Yes

Employer maximum contribution limit

Participant’s account cannot exceed $61,000 for 2022 and $66,000 for 2023

Cannot exceed the lesser of 25% of the employee's compensation or $61,000 for the year 2022, $66,000 for 2023

Employer contributions are one of two: 3% matching contribution or 2% non-elective contribution

Employee maximum contribution limit

$20,500 max. in 2022, $22,500 in 2023

$14,000 maximum in 2022, $15,500 max. in 2023

Catchup contributions if 50 or older

$6,500 in 2022, $7,500 in 2023

$3,000 in 2022, $3,500 in 2023

Can exclude part time employees

Yes

IRS tax filing required

Yes

Plan expenses are deductible

Yes

Yes, to employer

Can take out a loan

Yes

Self-Employed and Small Business Retirement Plan FAQs

What is the best retirement plan if you are self-employed?

There is no one best plan when it comes to small businesses retirement accounts. The best retirement plan may vary depending on whether you have employees, how much you can contribute, or if you want to take out loans from the plan. See the different types of plans here.

How do I start a 401(k) plan?

You do not need an employer to start a 401(k) plan if you are self-employed. You can establish your own plan online. Depending on the plan, you may be able to make contributions to your retirement account as the employer and also as the employee.

How many 401(k)s can you have?

Whether you are self-employed or a W-2 employee, there is not a limit to the number of 401(k) plans you can have. Sometimes due to change of jobs you may have other plans left behind. However, you can only contribute to the plan where you are currently employed or an active participant. In addition to an employer sponsored 401(k), you can also have a Traditional IRA or Roth IRA even if you are making contributions to a 401(k).

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For Business Owners

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Compare Fees and Services

Best Retirement Plans for the Self-Employed and Small Businesses

Easy to set-up, maintain, and affordable so you can grow your small business.

Small Business and Self-Employed Retirement Plan Options

Self-Directed Business Retirement Plan Start-Up Fees

When Shopping for Fees...

SEP IRA

$199 /yr

SIMPLE IRA

$199 /yr

Solo 401(k)

$899 /yr

SMALL BUSINESS RETIREMENT PLANS GUIDE

Download the Easy Guide to Understanding Small Business Retirement Plans

Moving Your Small Business Retirement Plan to IRAR

Download

Transfer Rollover Guide

Start a Plan Today

Tax-Deductions, Salary Deferrals, and More!

Get started

Open a Self-Directed Plan

From 0-100 Employees— You Have Options.

Small Business Plan Comparison & Annual Contribution Limits

Self-Employed and Small Business Retirement Plan FAQs

What is the best retirement plan if you are self-employed?

How do I start a 401(k) plan?

How many 401(k)s can you have?

Discover an Easy and Effective Method to Educate Yourself on Small Business Retirement Plans

Download the Small Business Retirement Plans Guide Now

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IRAR Trust Company
100 Pringle Avenue Ste 650
Walnut Creek, California 94596