Small-Business Plans Available at Fidelity
| SEP IRA | Self-Employed 401(k) | SIMPLE IRA | Investment-Only | 401(k) | |
| Who it's for | Self-employed individual or small business owner, including those with employees
Available to sole proprietors, partnerships, C corporations, S corporations |
Self-employed individual or business owner with no employees other than a spouse
Available to sole proprietors, partnerships, C corporations, S corporations |
Businesses with 100 or fewer employees and self-employed individuals
Available to sole proprietors, partnerships, C corporations, S corporations |
Businesses that want a full brokerage account for investing plan assets for their non-Fidelity prototype retirement plan but do not require other plan services
Fidelity provides no plan documents, tax reporting or administrative services. |
Any type of public or private company
Generally most appropriate for companies with 20 or more employees |
| Key advantages | Easy to set up and maintain
Flexible annual funding requirements Wide range of investment choices |
A 401(k) with potentially higher contribution limits than SEP IRA
Wide range of investment choice |
Salary deferral plan with less administration
Electronic funding with customized contribution allocation for each participant Wide range of investment choice |
Wide range of investment choice
No account setup fee or annual maintenance fee1 |
Flexibility in plan design
Plan administrative services, investment management, and participant education programs Wide range of mutual fund options |
| Fees1 | No initial setup fee or annual maintenance fee | No initial setup fee or annual maintenance fee | Low cost with option of annual fee of $25 per participant or $350 plan fee | No account setup fee or annual maintenance fee | Varies by plan |
| Who can contribute | Funded solely by employer contributions | Funded by employee deferrals and employer contributions | Funded by employee deferrals and employer contributions | Varies by plan | Funded by employee deferrals and employer contributions |
| 2014 employee contribution limits2 | Not applicable | Up to $17,500 in salary deferrals; $23,000 if age 50 or older | Up to $12,000 in salary deferrals; $14,500 if age 50 or older | Varies by plan | Up to $17,500 in salary deferrals, or $23,000 if age 50 or older (limits may vary by plan) |
| 2015 employee contribution limits2 | Not applicable | Up to $18,000 in salary deferrals; $24,000 if age 50 or older | Up to $12,500 in salary deferrals; $15,500 if age 50 or older | Varies by plan | Up to $18,000 in salary deferrals, or $24,000 if age 50 or older (limits may vary by plan) |
| 2014 employer contribution limits | Up to 25% of compensation3 up to a maximum of $52,000 | Employers may contribute up to 25% of compensation3 up to a maximum of $52,000.
Total employer/employee contributions cannot exceed $52,000. |
Either match employee contributions up to 3% of compensation; can be reduced to 1% in any two out of five years or contribute 2% of each employee's compensation,3 up to $5,000. | Varies by plan | Employers may make a matching contribution or profit sharing contribution up to 25% of compensation up to a maximum of $52,000.
Total employer/employee contributions cannot exceed $52,000. |
| 2015 employer contribution limits | Up to 25% of compensation3 up to a maximum of $53,000 | Employers may contribute up to 25% of compensation3 up to a maximum of $53,000.
Total employer/employee contributions cannot exceed $53,000. |
Either match employee contributions up to 3% of compensation; can be reduced to 1% in any two out of five years or contribute 2% of each employee's compensation,3 up to $5,000 | Varies by plan | Employers may make a matching contribution or profit sharing contribution up to 25% of compensation up to a maximum of $53,000.
Total employer/employee contributions cannot exceed $53,000. |
| Administrative responsibilities | No employer tax filings; employee notification for employer's contribution, if made | Annual Form 5500 filing after plan assets exceed $250,000 | No employer tax filings;
certain annual employee notifications must generally be made by Nov. 1. |
Varies by plan | Form 5500 and special IRS testing to ensure plan does not favor highly compensated employees |
| Access to assets4 | Withdraw at any time, but a 10% penalty may apply if you are under age 59½. | Cannot take withdrawals from the plan until a "trigger" event occurs, such as turning age 59½, disability, and/or plan termination | Withdraw at any time, but a 10% penalty may apply if you are under age 59½. If the withdrawal is taken within first two years of participation in the plan, that penalty increases to 25%. | Varies by plan | Loans may be available.
Hardship withdrawals may be available but a 10% penalty may apply if you are under age 59½. Withdrawals can be taken upon a "trigger" event such as turning age 59½, disability, termination of employment, and/or plan termination. |
| Plan setup deadlines | Establish by employer's tax filing deadline, plus extensions, usually April 15. | Establish by December 31 (or fiscal year-end). | Establish by October 1. | Varies by plan | Deadline is based upon the plan selection. Call 877-295-7662 to find out more about Fidelity's 401(k) plans. |
| How to open an account | Open online or call a retirement representative at 800-544-5373, option 3. | Get started on your own or call a retirement representative at 800-544-5373, option 3 to open. | Get started on your own or call a retirement representative at 800-544-5373, option 3 to open. | Call a retirement representative at 800-544-5373, option 3 to open. | Call a retirement representative at 866-418-5173 to open. |