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SMALL BUSINESS RETIREMENT PLANS

Find the Right Retirement Plan for Your Small Business

Choosing a plan is about finding the right fit for your business. Compare plans designed for small businesses and choose an option that supports how your business runs today—and where it’s headed next.

Talk to a retirement specialist Find your fit

Big benefits for small businesses

Our small business plans are designed to help you stay focused on growing your business.


Simple

Designed for easy plan management, our solutions include features to help employers deliver a smooth experience.

Transparent

No hidden pricing or complexity. Just straightforward fees designed for small businesses that need predictability.

Flexible

Plan features, investment lineups, and service levels that are simple and evolve with your business.

Compare small business retirement plans

Get a quick breakdown of how these four popular retirement plans stack up against each other.


SEP IRA

SIMPLE IRA

Individual(k)

Ascensus Essentials 401(k)

Eligibility

Business of any size 

Businesses with less than 100 employees

Owner-only businesses with no full-time employees

Business with up to 75 employees

Contribution limits

High limits (up to 25% of compensation OR $72,000)

Lower limits (up to $17,000 for 2026)

High limits (up to $72,000 for 2026)

High limits (up to $72,000 for 2026)

Employer contributions

Required, must be an equal percentage for all eligible employees

Required, either a 2% non-elective or 3% match

Discretionary profit sharing

Optional matching or profit sharing

Plan benefit details

Each retirement solution offers distinct advantages depending on your business structure.

SEP IRA

SEP IRA

Designed for: Businesses of any size with variable cash flow

A Simplified Employee Pension (SEP) IRA allows you to contribute to your retirement and your employees’ accounts. Choose to make larger contributions during profitable years and skip contributions when needed.

Plan features

  • Owner-only contributions (tax deductible)

  • High contribution limits (up to $72,000 in 2026)

  • No requirement to contribute every year

Admin and compliance

  • Simple plan administration (one of the lowest effort plans to maintain)

  • No annual nondiscrimination testing

  • No employer tax filing requirements

  • No employer tax filing

Participant experience

  • Employees cannot contribute through their paychecks

  • Contributions are immediately 100% vested

See all plan details
SIMPLE IRA

SIMPLE IRA

Designed for: Small businesses that want straightforward benefits

The Savings Incentive Match Plan for Employees (SIMPLE) IRA offers a low-maintenance solution for smaller companies that want to offer retirement savings benefits for their employees.

Plan features

  • A low-cost, easy-to-manage plan

  • Employees can contribute from their paycheck

  • Employers must contribute each year

Admin and compliance

  • Simple plan administration

  • Quick online setup

  • No testing or Form 5500 filing requirement

Participant experience

  • Payroll deductions make saving automatic

  • Employer contributions are immediately 100% vested

See all plan details
Individual(k)

Individual(k)

Designed for: Owner-only businesses that want to maximize retirement savings   

Also known as a Solo 401(k), this plan allows independent contractors, solopreneurs, and businesses without employees to reduce taxable income and save for the future. Contribute as both the employer and the employee, saving more for retirement without the administrative burden of a 401(k). 

Plan features

  • Higher contribution limits than SEP or SIMPLE IRAs

  • Pre-tax and Roth contribution options

  • Ability to borrow from your balance and repay yourself 

  • READYSAVE® mobile app

Admin and compliance

  • Easy to set up and maintain

  • Built-in plan support

  • Lower administrative burden and cost

See all plan details
Ascensus Essentials 401(k)

Ascensus Essentials 401(k)

Designed for: Growing teams that want a turnkey plan with high contribution limits

Not just a retirement plan—a bundled offering to fit your small business needs. Ascensus Essentials 401(k) is designed to attract and retain top talent, with the tax advantages and features needed to support a growing team.

Plan features

  • Available for businesses with up to 75 employees

  • Offers higher contribution limits than most other plans

  • Pre-tax employee contributions

  • Optional employer contributions

  • Optional Roth feature

Admin and compliance

  • Online plan setup and automated processes

  • Payroll integration with 500+ providers

  • Full-service plan administration

  • Compliance testing and regulatory support

Participant experience:

  • Automatic enrollment and automatic increase

  • READYSAVE® app for mobile access

  • Financial wellness program

  • Ongoing participant education

See Ascensus Essentials plan details Explore 401(k) plans for larger businesses

Top questions about retirement plans

How do contribution limits differ between plans?

Contribution limits are typically highest for traditional 401(k) and Individual(k) plans, making them a good fit for owners who want to save more each year. SEP IRAs also allow sizeable contributions based on a percentage of compensation, while SIMPLE IRAs have lower annual limits designed for straightforward employee saving.

What are the administrative requirements for each plan?

Traditional 401(k) plans have higher administrative requirements, such as annual IRS filings and compliance testing. Individual(k), SEP IRA, and SIMPLE IRA plans have much lower administrative burdens, with SEP and SIMPLE IRAs requiring no annual IRS filings for most small businesses.

Do employer contributions differ by plan?

Yes. SEP IRAs require the employer to make equal percentage contributions for all eligible employees. SIMPLE IRAs require a match or nonelective contribution. In 401(k) and Individual(k) plans, employers have more flexibility and can choose to offer matching or profit sharing.

Can I change my contribution each year?

Most plans allow you to adjust your contributions. SEP IRAs are especially flexible, letting employers vary contributions or skip them in lean years. SIMPLE IRAs and 401(k) plans also permit yearly changes, subject to IRS rules.

What if I want to switch plans later?

Many small businesses change retirement plan types as they grow. You can usually roll over assets from one plan to another but be sure to follow IRS rollover rules and consult a financial professional before making a change.

How do I determine the best fit for my business?

Start by assessing your business size, growth plans, and desired administrative workload. Think about your team’s makeup and how much you want to contribute personally. Comparing the side-by-side features and considering your business goals will help you narrow down the right choice.

Why partner with Ascensus?


#1

Named Retirement Leader of the Year
With Intelligence Mutual Fund & ETF Awards2

#3

Overall customer satisfaction
JD Power Retirement Plan Digital Experience3

4.8

READYSAVE® app, rated 4.8 stars
Makes it easier for participants to manage savings4

Take the next step

Starting your first plan or thinking about switching providers? Our team can help you compare your options.

Share a few details, and we’ll help you explore plans for your business.

Keep exploring

Read more about all the different ways Ascensus can help support you and your employees’ retirement goals.

Top 5 Reasons to Start a 401(k)

Discover the owner advantages, financial incentives, and recruiting and retention benefits of starting a 401(k) plan for your small business.

Is Your Small Business Too Small for a 401(k)?

You don’t have to own a huge corporation to offer a retirement plan. Many providers offer plans specifically designed for owner only or very small businesses.

How to Set Up a Small Business 401(k)

Learn how to set up a 401(k)—from choosing a plan type, to understanding fees and costs, to selecting the right plan provider.

1 Timing may vary based on plan design elections

2Source: With Intelligence. With Intelligence Mutual Fund & ETF Awards. February 2026. https://awards.withintelligence.com/mutualfundandetfawards/en/page/2026-winners

3Source: JD Power. 2025 U.S. Retirement Plan Digital Experience Study. September 2025.

4Source: App store rating as of April 2026. Based on user reviews from the Apple App Store® and Google Play™. Ratings may change over time and may not be representative of all user experiences. Apple and Google Play are registered trademarks of their respective owners.