Key Factors Affecting Plan Selection for Businesses

Free CFP Exam lesson in Retirement Savings and Income Planning. 15 min read, ~2,186 words.

DB plans allow the largest contributions for older, high-earning owners; actuarial cost scales with proximity to retirement. SEP: employer-only, same percentage for all, no deferrals, immediate vesting, cheap to administer but expensive once staff are added. SIMPLE: $17,000 deferral cap, 100 or fewer employees, low ceiling for high earners. Cross-tested...