Plan Comparison Chart

The EJReynolds Plan Comparison Chart
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Keeping employees around until they retire is one thing, offering them the right retirement plan so they can enjoy their retirement is another.

At EJReynolds, we understand how important plan design is. Some firms want to attract and retain qualified employees. Others are looking to minimize compliance risk and control costs. Still others are looking for the maximum contributions to the owners.

That’s why we work with every client, both at the onset of the plan and each year, to ensure that the plan still meets the needs of the firm, while providing meaningful benefits to their employees, and minimizing tax risks to the owners.

The right TPA should have Expert Knowledge, Dedicated Service, Great Solutions and lead to growth for you and your clients.

EXPERTISE & EXPERIENCE

  • Reputable qualified retirement plan expertise for nearly 30 years
  • Diverse professional backgrounds (accounting, human resources, actuarial)
  • Extensive employee accreditations (QPA, ERPA, CPC, QKA, TGPC)
  • Senior administrators enrolled to practice before the IRS

SERVICE & DEDICATION

  • One-on-one quality advisor and client relationships
  • Dedicated and flexible business development staff
  • Bi-lingual administrators to meet market needs
  • Customized plans designed to fit sponsor goals

EFFECTIVE & ACCURATE SOLUTIONS

  • Consultative approach ensures successful plans
  • Leading-edge plan design through our specialization
  • Fiduciary solutions and trusted management
  • Advanced technology for proper administration

Plan Comparison Chart

Plan TypeIRASEP IRAProfit SharingSimple IRA401(k)Safe Harbor 401(k)Money PurchaseCash Balance or Defined BenefitCombination 401(k) & Cash Balance or Defined Benefit
Target MarketAny individual with earned income under age 70 1/2Small businesses & self-employed individualsBusiness with fluctuating earnings and self-employed individualsNo More than 100 Employees who earned more than $5,000 in prior yearSole proprietorships, partnerships, limited liability companies and CorporationsSole proprietorships, partnerships, limited liability companies and CorporationsBusiness with high stable earnings; self-employed individuals & nonprofit organizationsBusiness with high consistent earnings & owners close to retirementBusiness with high consistent earnings & owners close to retirement
Key FeaturesTax-deferred investing; no discrimination testing; investment flexibilityInvestment flexibility; limited reportingFlexible Contributions; investment flexibilityTax-deferred investing; no discrimination testing; investment flexibility; limited reportingTax-deferred investing; flexibility in plan design; investment flexibilityTax-deferred investing; no discrimination testing; investment flexibilityConsistent contributions, investment flexibilityConsistent contributionsGreatest Maximum consistent contributions
ContributorsEmployee onlyEmployer onlyEmployer onlyEmployee & EmployerEmployee & optional EmployerEmployee & EmployerEmployer onlyEmployer onlyEmployer & Employee
Contribution FlexibilityYesYesYesVery LimitedYesNo; possible additional employer contributions above safe harborNo; percentage established at plan set upNo; based on formula and Actuarial calculationNo; based on formula and Actuarial calculation
Maximum Eligibility RequirementsNot ApplicableAge 21 with any service in 3 of last 5 yearsAge 21 and 1 year of service (2 years with 100% vesting)Employees earning $5,000 in current year & any 2 prior yearsAge 21 and 1 year of serviceAge 21 and 1 year of serviceAge 21 and 1 year of service (2 years with 100% vesting)Age 21 and 1 year of service (2 years with 100% vesting)Age 21 and 1 year of service (2 years with 100% vesting)
Maximum Total Individual Contribution$6,000 (2021) plus $1,000 for those age 50 or olderNot ApplicableNot Applicable$13,500 (2021) plus $3,000 for those age 50 or older$19,500 (2021) plus $6,500 for those age 50 or older$19,500 (2021) plus $6,500 for those age 50 or olderNot ApplicableNot ApplicableEmployee limited to $19,500 (2021) plus $6,500 for those age 50 or older
Maximum Annual Employer ContributionNot Applicable25% of eligible employee compensation; individually limited to $58,000 (2021)Up to 25% of eligible employee compensation; limited to $58,000 per eligible employee (2021)100% up to 3% match to participants or 2% to all eligible employees25% of eligible employee compensation; limited to $58,000 (2021)3-4% safe harbor; optional additional contribution either matching or non-elective. (total 25% of eligible compensation)Up to 25% of eligible employee compensation; limited to $58,000 per eligible employee (2021)Amount needed to fund planAmount needed to fund plan
Vesting in Employer ContributionNot Applicable100% immediatelyMay be graded up to 6 years or 100% after 3 years100% immediatelyMay be graded up to 6 years or 100% after 3 years100% immediately on Safe-Harbor contributionsMay be graded up to 7 years or 100% after 3 years100% vesting after 3 years may be required100% vesting after 3 years may be required
LoansNoNoYesNoYesYesYesYesYes
When EstablishedAny time prior to tax filing deadline of April 15th without extensionAny time prior to tax filing deadline including extensionsPrior to fiscal year endPrior to October 1stPrior to fiscal year endAnytime with 30 day notification for new plans prior to October 1stPrior to fiscal year endPrior to fiscal year endPrior to fiscal year end
IRS 5500 ReportingNoNoYesNoYesYesYesYesYes