SIMPLE vs. Traditional 401(k)
Which is best for your business?

 

SIMPLE IRA

SIMPLE 401(k)

Standard 401(k)

Maximum Business Size

100 or fewer employees

100 or fewer employees

No limit

Individual Contribution Limit

$12,500 in 2018 ($15,500 for those over age 50)

$12,500 in 2018 ($15,500 for those over age 50)

$18,500 in 2018 ($24,500 for those over age 50)

Discrimination Testing

No

Limited

Yes

Mandatory Employer Match

Yes, 1%-3% of salary

Yes, 3% of salary

No

Vesting

Immediate

Immediate

Up to 7 years

Administration

Least

Medium

Most