Employee Retirement Plans

BUSINESS AND CORPORATE ACCOUNTS

Whether you are self-employed or the owner of a small business, there is a wide range of retirement plans designed to meet your specific needs. All of these retirement plans can help you save money for retirement while potentially providing tax advantages.

	SEP IRA	Self-Employed 401(k)	Simple IRA	Investment Only	401(k)
Who it's for	Self-employed individual or small business owner, including those with employees Available to sole proprietors, partnerships, C corporations, S corporations	Self-employed individual or business owner with no employees other than a spouse Available to sole proprietors, partnerships, C corporations, S corporations	Businesses with 100 or fewer employees and self-employed individuals Available to sole proprietors, partnerships, C corporations, S corporations	Businesses that want a full brokerage account for investing plan assets for their non-Galleon prototype retirement plan but do not require other plan services Galleon provides no plan documents, tax reporting or administrative services.	Any type of public or private company Generally most appropriate for companies with 20 or more employees Galleon does not typically offer new startup plans in this category
Key advantages	Easy to set up and maintain Flexible annual funding requirements Wide range of investment choices	A 401(k) with potentially higher contribution limits than SEP IRA Wide range of investment choice	Salary deferral plan with less administration Electronic funding with customized contribution allocation for each participant Wide range of investment choice	Wide range of investment choice	Flexibility in plan design Plan administrative services, investment management, and participant education programs Wide range of mutual fund options
Fees¹	No account fees and no minimum to open an account	No account fees and no minimum to open an account	No account fees and no minimum to open an account	No account fees and no minimum to open an account	Varies by plan
Who can contribute	Funded solely by employer contributions	Funded by employee deferrals and employer contributions	Funded by employee deferrals and employer contributions	Varies by plan	Funded by employee deferrals and employer contributions
2018 employee contribution limits²	Not applicable	Up to $18,500 in salary deferrals; $24,500 if age 50 or older	Up to $12,500 in salary deferrals; $15,500 if age 50 or older	Varies by plan	Up to $18,500 in salary deferrals, or $24,500 if age 50 or older (limits may vary by plan)
2019 employee contribution limits²	Not applicable	Up to $19,000 in salary deferrals; $25,000 if age 50 or older	Up to $13,000 in salary deferrals; $16,000 if age 50 or older	Varies by plan	Up to $19,000 in salary deferrals, or $25,000 if age 50 or older (limits may vary by plan)
2018 employer contribution limits	Up to 25% of compensation³ up to a maximum of $55,000	Employers may contribute up to 25% of compensation³ up to a maximum of $55,000. Total employer/employee contributions cannot exceed $55,000.	Either match employee contributions up to 3% of compensation; can be reduced to 1% in any two out of five years or contribute 2% of each employee's compensation,³ up to $5,500	Varies by plan	Employers may make a matching contribution or profit sharing contribution up to 25% of compensation up to a maximum of $55,000. Total employer/employee contributions cannot exceed $55,000.
2019 employer contribution limits	Up to 25% of compensation³ up to a maximum of $56,000	Employers may contribute up to 25% of compensation³ up to a maximum of $56,000. Total employer/employee contributions cannot exceed $56,000.	Either match employee contributions up to 3% of compensation; can be reduced to 1% in any two out of five years or contribute 2% of each employee's compensation,³ up to $5,600	Varies by plan	Employers may make a matching contribution or profit sharing contribution up to 25% of compensation up to a maximum of $56,000. Total employer/employee contributions cannot exceed $56,000.
Administrative responsibilities	No employer tax filings; employee notification for employer's contribution, if made	Annual Form 5500 filing after plan assets exceed $250,000; periodic plan amendments for legislative changes.	No employer tax filings; certain annual employee notifications must generally be made by Nov. 1.	Varies by plan	Form 5500 and special IRS testing to ensure plan does not favor highly compensated employees
Access to assets⁴	Withdraw at any time, but a 10% penalty may apply if you are under age 59½.	Cannot take withdrawals from the plan until a "trigger" event occurs, such as turning age 59½, disability, and/or plan termination	Withdraw at any time, but a 10% penalty may apply if you are under age 59½. If the withdrawal is taken within first two years of participation in the plan, that penalty increases to 25%.	Varies by plan	Loans may be available. Hardship withdrawals may be available but a 10% penalty may apply if you are under age 59½. Withdrawals can be taken upon a "trigger" event such as turning age 59½, disability, termination of employment, and/or plan termination.
Plan setup deadlines	Establish by employer's tax filing deadline, plus extensions, usually April 15.	Establish by December 31 (or fiscal year-end).	Establish by October 1.	Varies by plan	Deadline is based upon the plan selection. Call 877-295-7662 to find out more about Galleon's 401(k) plans.
How to open an account	Call a retirement representative at 800-832-8514.	Call a retirement representative at 800-832-8514.	Call a retirement representative at 800-832-8514.	Call a retirement representative at 800-832-8514.	Call a retirement representative at 800-832-8514

May 5, 2019

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Key Facts and Highlights

Employee Retirement Plans

SUPPORT

Technology and admin support for both new and existing plans.

54%

Offering a retirement plan can increase in employee-retention.

CHOICES

Wide range of investment choices, depending on plan.

OPTIONS

SEP IRA, Self-Employed 401(k), 401(k), or investment-only.

Business Planning

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Business Planning

Often the dreams of many, owning a business can be rewarding. However, managing your own business takes much more than hard work. You need a plan that addresses the needs of your business throughout every stage. As a business owner, you undoubtedly have specific financial priorities. Protecting your business interests means being prepared for the unexpected. To synchronize your personal and professional goals, we suggest you begin by drafting a one-page business succession plan.