Comparing small business retirement plans featuring Vanguard investments
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Plan sponsors and participants |
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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. |
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Contributions |
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Employee For 2025, up to $23,500, not to exceed 100% of compensation. Roth contributions are accepted. |
Employee For 2025, up to $16,500, not to exceed 100% of compensation. |
Employee — |
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Employer For 2025, up to 25% of the employee’s compensation, not to exceed annual maximums. |
Employer 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 2025, up to 25%* of the employee's compensation or $70,000, whichever is less. |
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Maximum amount of employer plus employee contributions for 2025 $70,000 |
Maximum amount of employer plus employee contributions for 2025 — |
Maximum amount of employer plus employee contributions for 2025 — |
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Catch-up contributions for 2025 An employee over the age of 50 can contribute an additional $7,500 or an increased catch-up of $11,250 for those aged 60-63. |
Catch up contributions for 2025 An employee over the age of 50 can contribute an additional $3,500 or an increased catch-up of $5,250 for those aged 60-63. |
Catch up contributions for 2025 — |
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Investment choices |
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A variety of Vanguard mutual funds. |
A variety of Vanguard mutual funds. |
A variety of Vanguard mutual funds. |
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Fees |
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No plan set up fee. $20 for each Vanguard mutual fund in each account. $20 annual fee per participant for custodial services. |
No plan set up fee. $25 for each Vanguard mutual fund in each account. $20 annual fee per participant for custodial services. |
No plan set up fee. $20 for each Vanguard mutual fund in each account. $20 annual fee per participant for custodial services. |
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Filing requirements |
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Requires IRS filing |
Doesn’t require IRS filing |
Doesn’t require IRS filing |
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