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. Retirement

    SIMPLE IRA Contribution Limits in 2016

    Learn the SIMPLE IRA contribution limits for 2016, with a brief summary of how the plan works, including eligibility and contribution and distribution rules.
  2. Retirement

    SEP IRA Limits in 2016

    Discover the SEP IRA limits for 2016. Included is a summary, plans that would be ideal candidates for SEP IRAs, and contribution and distribution rules.
  3. Retirement

    SEP IRAs Tutorial

    Learn about the set-up, the contributions to and the distributions from this IRA-based plan to which employers may make tax-deductible contributions on behalf of eligible employees.
  4. Retirement

    Business Owners: How To Set Up An SEP IRA

    SEP IRAs are simple to set up and run, making them a popular choice for business owners.
  5. Retirement

    Is a SIMPLE IRA Right for Your Small Business?

    Here's how small businesses can benefit from offering a SIMPLE IRA to their employees.
  6. Small Business

    Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  7. 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.
  8. 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.
  9. Retirement

    SIMPLE IRA Vs SIMPLE 401(k) Plans

    See the differences that may cause an employer to choose one plan over the other.
Frequently Asked Questions
  1. What's considered to be a good debt-to-income (DTI) ratio?

    Your debt-to-income ratio helps lenders determine your credit worthiness. Find out how to calculate your score and how to ...
  2. What is the difference between a loan and a line of credit?

    Learn to differentiate between lines of credit and standard loans, and determine when you are likely to use each method of ...
  3. What does a Chief Financial Officer (CFO) do?

    A CFO is responsible for accurate reporting of a company's financial information, investing the company's money and identifying ...
  4. How did George Soros break the Bank of England?

    George Soros pocketed $1 billion by betting against the British pound, cementing his reputation as the premier currency speculator ...
Trading Center