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 proprietors who want to make the highest contribution possible (for themselves and a working spouse) |
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 $51,000 for tax year 2013 and $56,500 if age 50 or older (For 2012 the limit is $50,000 and $55,500 if age 50 or older). Contributions are allowed for business owner and their working 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? |
$20 account service fee for each mutual fund account with a balance below $10,000.† |
$20 account service fee for each mutual fund account with a balance below $10,000.† |
$20 account service fee for each mutual fund account with a balance below $10,000.† |
|
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 2012 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 contribution is $250,000 for tax year 2013 ($245,000 in 2012). 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.
†The $20 account service fee will be waived for the following circumstances: Subscribe to electronic delivery of statements and confirmations (participants can subscribe to paperless delivery via the T. Rowe Price website once their account is established.); maintain an individual combined balance of $50,000 or more for all T. Rowe Price accounts (including mutual funds, Brokerage, Variable Annuity, and Small Business Retirement Plans); or qualify for T. Rowe Price Select Client Services based on higher asset levels of $100,000 or more. If the Participant Account is closed during the year, a $20 closeout fee will be deducted automatically from the proceeds of the total redemption. However, the closeout fee is waived when an account service fee was previously assessed to the participant for that year or when the proceeds are being used for a rollover, transfer or conversion to a T. Rowe Price retirement plan account or T. Rowe Price IRA account.
††Contributions may or may not be deductible.
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