Comparing small business retirement plans featuring Vanguard investments

	Individual(k)^TM	SIMPLE IRA	SEP IRA
	Learn more	Learn more	Learn more

Plan sponsors and participants
Plan sponsors and participants	Self-employed individuals or businesses with no common-law employees that want to maximize tax deferrals, including those interested in a Roth 401(k) option.	Self-employed individuals or businesses with 100 or fewer employees that want to encourage employee contributions and provide an annual employer contribution.	Self-employed individuals or businesses that want to provide a retirement benefit to all employees (including themselves) solely through employer contributions.
Contributions
Contributions	Employee For 2026, up to $24,500, not to exceed 100% of compensation. Roth contributions are accepted.	Employee For 2026, up to $17,000, not to exceed 100% of compensation. Increased limit up to $18,100²	Employee —
	Employer For 2026, up to 25%¹ of the employee’s compensation, not to exceed annual maximums.	Employer Match up to 3% of employee's compensation. OR An annual non-elective contribution of 2% of each eligible employee's compensation. Beginning with tax year 2024, the contribution limits have been updated for both employee salary deferral and employer.	Employer For 2026, up to 25%¹ of the employee's compensation or $72,000, whichever is less.
	Maximum amount of employer plus employee contributions for 2026 $72,000	Maximum amount of employer plus employee contributions for 2026 —	Maximum amount of employer plus employee contributions for 2026 —
	Catch-up contributions for 2026 An employee over the age of 50 can contribute an additional $8,000 or an increased catch-up of $11,250 for those aged 60-63.	Catch up contributions for 2026 An employee over the age of 50 can contribute an additional $4,000 (increased catch-up limit of $3,850²) or an increased catch-up of $5,250 for those aged 60-63.	Catch up contributions for 2026 —
Employee contribution types
Employee contribution types	Pre-tax and Roth deferrals available.	Pre-tax and Roth deferrals available.	Pre-tax deferrals only.
Investment choices
Investment choices	A variety of Vanguard mutual funds.	A variety of Vanguard mutual funds.	A variety of Vanguard mutual funds.
Fees
Fees	No plan setup fee. $20 quarterly recordkeeping fee per participant 0.03% annual custodial fee on account assets³	No plan setup fee. $20 quarterly recordkeeping fee per participant 0.03% annual custodial fee on account assets³	No plan setup fee. $20 quarterly recordkeeping fee per participant 0.03% annual custodial fee on account assets³
Filing requirements
Filing requirements	Requires IRS filing	Doesn’t require IRS filing	Doesn’t require IRS filing

For informational purposes only. This chart provides a high-level comparison only. Plan features, contribution limits, fees, and requirements are based on current law and available information and are subject to change. Actual plan design, administration, and compliance obligations depend on an employer's specific facts and circumstances. Employers should consult their own advisors before selecting or administering a plan.

¹25% of compensation for employer tax deduction.
²Applies to certain small and electing SIMPLE plans.
³Fees are shown in annual terms but are deducted quarterly, assessed on the first $100,000 of assets