While the three plans discussed above are the most commonly used employer-sponsored plans, you should be familiar with several others, including:

Simplified Employee Pension (SEP) IRAs
SEP IRAs were created to provide a simpler alternative to profit-sharing plans. SEP IRAs are easy to establish and run, yet employers may still vary their contributions to the plan from year to year, much in the same manner as with a profit-sharing plan.

Under the rules of a SEP, the employer is required to include all employees that are 21 years old or older and have worked for the employer during three of the last five years.

In 2013, an employer may contribute up to 25% of the employee's salary or $51,000, whichever is lowest, to the employee's individual SEP IRA account.

Learn more about the eligibility requirements, and contributions and distribution rules of SEP IRAs within the tutorial SEP IRAs.

Savings Incentive Match Plans for Employees (SIMPLE)
SIMPLE plans are available for small employers who have 100 or fewer eligible employees (those who make at least $5,000 per year) and who sponsor no other retirement plans for their employees. The SIMPLE contributions may be made either to an IRA or a 401(k). For 2006, employees can choose to contribute up to $12,000 per year via salary deferral. The employer must contribute either a matching amount up to 3% or a non-elective contribution of at least 2%. SIMPLE plans are so named because they require much less paperwork and administrative testing, as well as fewer costs than other employer-sponsored retirement plans.

For participants older than 50 years old, catch-up contributions are permitted up to $2,500 .

457 Governmental Plans
Similar to 403(b) plans, 457 plans are available to governmental organizations such as state, county and municipal employers. They are known as deferred compensation plans, and contributions may only be made by the employee via salary deferral. Maximum salary deferral limits are the same as 401(k) plans ($17,500 plus $5,000 for catch up )

Keogh Plans

Related Articles
  1. Small Business

    Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  2. Retirement

    Benefits Of A SIMPLE IRA

    If you're at a small company, you may be offered a SIMPLE IRA retirement plan. Contribution limits are lower, but vesting is instant, with other benefits.
  3. Retirement

    SIMPLE IRA Vs SIMPLE 401(k) Plans

    See the differences that may cause an employer to choose one plan over the other.
  4. Retirement

    Retirement Planning For The Self-Employed

    Recent studies show that most self-employed Americans are saving little, if anything, for retirement. But making an investment in yourself is worth it.
  5. Retirement

    Hey Self-Employed, Are You Making The Most Of Your Retirement Options?

    Even if you own your own business, it is still very important to save for retirement, and to understand your options for doing so.
  6. Financial Advisor

    SIMPLE IRA Tutorial

    This comprehensive guide goes through what a SIMPLE IRA is, how to set one up, contribute to it and withdraw from it.
  7. Retirement

    The Basics Of A 401(k) Retirement Plan

    This plan has become one of the most popular retirement options. Find out why.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center