This chart is a side-by-side comparison of plan features, benefits, and requirements. For detailed plan information, simply click on the individual titles or call a T. Rowe Price small business retirement specialist at 1-800-638-3804.
| T. Rowe Price SEP-IRA |
T. Rowe Price Individual 401(k) | T. Rowe Price SIMPLE IRA |
|
|
Who is it for? |
For self-employed individuals and business owners who wish to make contributions for employees at a low administrative cost |
For sole proprietorships who want to make the highest contribution possible |
A low-cost, easy-to-administer plan for businesses with up to 100 employees or for self-employed individuals |
|
Key benefits |
Easy and inexpensive to set up and maintain |
Allows for the highest contributions in many cases |
Salary deferral plan with both employee and employer contributions |
|
What is the maximum contribution (per participant)?* |
Employer Contributions |
Salary Deferrals Employer Contributions Salary deferrals plus employer contributions may not exceed $49,000 for tax year 2010 and $54,500 if age 50 or older. Contributions are allowed for business owner and spouse |
Salary Deferrals Employer Matching OR Employer Nonelective |
|
What are the employee's options? |
Employer decides if contributions will be made year to year |
Employee decides whether to make pretax (and, if permitted, Roth after-tax) salary deferral contributions |
Employee can decide how much to contribute; employer must also make contributions |
|
May employees contribute? |
No |
Yes |
Yes |
|
Is the plan subject to a vesting schedule? |
N/A |
No |
N/A |
|
What are the annual fees? |
$10 administrative fee for each mutual fund account† |
$10 administrative fee for each mutual fund account† |
$25 administrative fee for each mutual fund account† |
|
What are the IRS filing requirements? |
Generally, none |
May require annual IRS Form 5500 |
None |
|
Is the plan qualified? |
No, IRA based |
Yes (defined contribution) |
No, IRA based |
|
What plan eligibility requirements can the employer choose to set? |
Age: no more than 21 Earnings: $500 in 2010 Years of Service: employed by the current employer in up to three of the past five years |
Age: no more than 21 Earnings: no restriction allowed Years of Service: no more than one year |
Age: no restriction allowed Earnings: not to exceed $5,000 Years of Service: no more than two years |
|
What is the plan setup deadline? |
Your company's tax filing deadline (including extensions) |
By the end of the initial plan year, generally December 31 |
Generally, anytime prior to October 1 of each calendar year (for existing employers) |
|
May I still contribute to an IRA? |
Yes†† |
Yes†† |
Yes†† |
**Maximum amount of compensation that can be used in determining contributions is $245,000 for tax year 2010. This amount is increased periodically for inflation.
***May be as low as 1% in no more than two years out of five consecutive calendar years.
†Fees are waived for mutual fund accounts with a balance of $5,000 or more, for individuals with $50,000 or more, or households with $100,000 or more in total assets with T. Rowe Price. Assets held in a 529 plan, a plan that is part of the Century Program, or assets held in a plan that was/is recoredkept in the Retirement Plan Services division of T. Rowe Price are not counted toward these limits. SIMPLE IRA fees will not exceed $100, regardless of the number of mutual funds held. A $10 closeout fee is applied to accounts that are closed ($25 for SIMPLE IRA). The fee is deducted automatically from the proceeds of the redemption from each mutual fund unless, at the time of redemption, the annual administrative fee for the year has been paid. The closeout fee applies regardless of the size of the mutual fund investments.
††Contributions may or may not be deductible.
Feedback