The major qualified retirement plans that businesses, non-profit companies and government entities can install are:
- SEP IRA Plans
- SIMPLE IRA Plans
- Profit-Sharing Plans
- Defined-Benefit Plans
- 401(k) Plans
- 403(b) Plans
- 457(b) Plans
All of these retirement plans can offer significant benefits to employees and business owners as they permit an accumulation of money for retirement in a tax-deferred manner.
Which of these employer sponsored plans is best? Each employer will select their plan based on their circumstances. Larger employers commonly offer 401(k) plans or have Defined Benefit Plans. A small business owner or a Sole Proprietor may turn to a SEP or a SIMPLE IRA because of their simple administration. 403(b) plans are generally offered by public schools or tax-exempt entities, and government entities generally offer 457 (b) plans.
