FAQ Categories: Compare Employee Retirement Plans

We begin by understanding your existing plan—or helping you set one up—and determining whether a CRA structure aligns with your investment goals, plan needs, and fiduciary responsibilities. Once a qualified plan is in place, we’ll establish the custodial account and implement your investment strategy.

Yes. CRAs are often used in solo 401(k)s, owner-only defined benefit plans, and other closely held business structures where the owner wants direct control over plan assets. This structure allows for institutional-level investing without the restrictions of bundled retirement platforms.

The plan sponsor is responsible for selecting the plan structure, coordinating with the administrator, and ensuring the CRA is used in compliance with plan rules. Global Advisers assists with plan design, investment policy development, fiduciary oversight, and ongoing compliance support.

Yes. When properly structured with a compliant plan document and administrator, a CRA fully satisfies ERISA and IRS requirements. Global Advisers partners with third-party administrators (TPAs) and recordkeepers to ensure the plan remains in good standing and meets all annual filing obligations.

Company Retirement Accounts generally have no setup or custodial fees. Investment management fees are typically asset-based and fully transparent. Depending on the investment strategy, there may be trading costs, fund expense ratios, or third-party management fees. Global Advisers provides clear documentation of all costs in advance.

In most CRA structures, participant-level access is available through secure client portals. Depending on the plan setup, participants may have view-only access or limited control over individual investment choices. Plan sponsors maintain primary oversight and control.

When you open a CRA at Global Advisers, we manage the assets on your behalf, just like in any other investment account. Our firm provides institutional-grade investment management and oversight for CRAs, tailored to your plan’s objectives and participant profile.

CRAs provide access to a wide range of investments, including: Individual stocks and ETFs Mutual funds Corporate and municipal bonds U.S. Treasuries and money market funds Professionally managed models or third-party strategies This flexibility allows for active management, custom portfolios, or passive index strategies.

No. A CRA is not a retirement plan itself—it is the custodial brokerage account where the plan assets are held and managed. It must be paired with a qualified plan document (e.g., a 401(k) or profit-sharing plan) to be compliant with IRS and Department of Labor rules.

Any business that sponsors a qualified retirement plan—such as a 401(k), profit-sharing plan, or defined benefit plan—can use a Company Retirement Account. CRAs are especially well-suited for business owners, fiduciaries, or advisors who want to manage plan investments actively or incorporate strategies beyond mutual fund menus. f

Traditional 401(k) platforms typically offer a preset menu of mutual funds or model portfolios. A CRA allows for open-architecture investing—giving the business or plan fiduciary access to a full range of public markets and investment strategies. This structure is ideal for businesses or plan sponsors who want greater control and customization.

A Company Retirement Account is a brokerage-based custodial account used to hold and manage retirement plan assets—typically for 401(k), profit-sharing, or defined benefit plans. Unlike traditional retirement plans with limited fund menus, CRAs provide access to a broad range of investments, including stocks, ETFs, mutual funds, and fixed income instruments.

No. One of the main advantages of a SIMPLE IRA is its minimal administration. Employers are not required to file Form 5500 or conduct nondiscrimination testing. However, they must provide employees with annual notices regarding eligibility, contribution limits, and plan features.

Currently, most SIMPLE IRAs are pre-tax only, though some recent legislation may allow Roth contributions in the future depending on custodial support. We can help you assess available plan providers and whether a Roth SIMPLE IRA is feasible for your business.

Yes, but with restrictions. During the first two years of participation, rollovers are only allowed to another SIMPLE IRA. After two years, participants may roll over funds to a traditional IRA or another qualified plan. Improper rollovers may trigger penalties and taxes.

Employees may withdraw funds at any time. However, withdrawals before age 59½ are subject to ordinary income tax and a 10% penalty. If the withdrawal occurs within the first two years of participation, the penalty increases to 25%. Required Minimum Distributions (RMDs) begin at age 72.

Yes. Employee contributions are made pre-tax, lowering taxable income. Employer contributions are deductible as a business expense. Investment earnings within the account grow tax-deferred until withdrawn in retirement.

Yes. Employers must make one of the following contributions each year: A dollar-for-dollar match of employee contributions up to 3% of compensation, or A 2% non-elective contribution for all eligible employees, whether they contribute or not. The employer must choose one method and apply it consistently for the year.

Employees can contribute up to the annual salary deferral limit set by the IRS. Participants age 50 and older can also make catch-up contributions. These amounts are adjusted annually. Contributions are deducted directly from the employee’s paycheck.

Employees who have earned at least $5,000 in any two prior years and are expected to earn at least $5,000 in the current year must be eligible to participate. Employers can choose to allow more generous participation but cannot set more restrictive eligibility rules. ƒ

Any business with 100 or fewer employees who earned at least $5,000 in compensation in the preceding calendar year may establish a SIMPLE IRA. The business must not offer any other retirement plan concurrently. It’s an excellent option for businesses seeking a low-cost, easy-to-administer retirement benefit.

A SIMPLE IRA (Savings Incentive Match Plan for Employees) is a retirement plan designed for small businesses with 100 or fewer employees. It allows employees to make salary deferral contributions while requiring the employer to make annual contributions, either as a matching percentage or a fixed amount.

Yes. SEP IRA contributions are discretionary. As the employer, you are not required to contribute every year. This makes the plan especially attractive to business owners with fluctuating income or seasonal businesses.

Yes. SEP IRA funds can be rolled over into a traditional IRA, another SEP IRA, or a qualified retirement plan like a 401(k), provided the receiving plan allows for incoming rollovers. Rollovers are not taxable if completed correctly.

No. One of the key advantages of a SEP IRA is the minimal administrative burden. Employers are not required to file annual IRS forms such as Form 5500, and no nondiscrimination testing is required. You simply report contributions as part of your business’s annual tax filing.

Employees must generally be included in the plan if they are at least 21 years old, have worked for the employer in at least three of the past five years, and have earned at least $750 (2023) or the current IRS threshold. Employers may choose less restrictive rules but not more restrictive ones.

SEP IRA distributions are taxed as ordinary income in the year they are withdrawn. If withdrawals are taken before age 59½, they may be subject to a 10% early withdrawal penalty unless an IRS exception applies. Required Minimum Distributions (RMDs) begin at age 72.

Yes. SEP IRA contributions are generally tax-deductible for the business and do not count as taxable income to the employee until funds are withdrawn in retirement. This makes SEP IRAs an efficient way to reduce current-year taxable income.

Employers can contribute up to 25% of each eligible employee’s compensation, up to the annual dollar limit set by the IRS. The same percentage must be applied uniformly to all eligible employees, including the owner. Contribution limits are significantly higher than those of a traditional IRA.

No. Only the employer contributes to a SEP IRA. Employees cannot defer part of their salary like in a 401(k). However, once contributions are made, the funds belong to the employee and are fully vested immediately.

Any business owner—including sole proprietors, partnerships, LLCs, and corporations—can establish a SEP IRA. These plans are particularly well-suited for businesses with no or few employees and for self-employed individuals looking to make larger retirement contributions without complex administration.

A SEP IRA (Simplified Employee Pension) is a retirement plan that allows business owners to make tax-deductible contributions to accounts set up for themselves and their eligible employees. It is designed for self-employed individuals, freelancers, and small business owners who want a simple, flexible retirement savings option with higher contribution limits than traditional or Roth [...]

Any business—regardless of size or structure—can offer a 401(k) plan. This includes sole proprietorships, partnerships, LLCs, corporations, and nonprofits. Plans can be tailored for businesses with one employee (such as the owner) or hundreds of employees, depending on your objectives.

A traditional 401(k) plan may require annual nondiscrimination testing to ensure contributions do not favor highly compensated employees. A Safe Harbor 401(k) avoids this testing by requiring mandatory employer contributions—either matching or non-elective—for all eligible employees. Safe Harbor plans are popular among small businesses that want to ensure full participation by owners and key employees [...]

Employees can contribute up to the annual IRS limit through salary deferrals. Additional “catch-up” contributions are allowed for participants age 50 and older. These limits are adjusted annually.

Yes. Employers can choose to offer matching contributions (e.g., 100% of the first 3% of employee pay) or profit-sharing contributions. These contributions are typically tax-deductible and can be designed to support specific compensation or retention strategies.

Yes. Employee contributions are made pre-tax, reducing taxable income in the year of the contribution. Employer contributions are deductible as a business expense. Investment growth within the plan is tax-deferred until funds are withdrawn in retirement.

Many 401(k) plans offer a Roth option, which allows employees to make after-tax contributions. Qualified withdrawals of Roth 401(k) earnings are tax-free in retirement. Participants can split their contributions between traditional and Roth if the plan permits it.

Withdrawals are allowed upon reaching age 59½, retirement, disability, death, or other qualifying separation from service. Early withdrawals before age 59½ are generally subject to a 10% penalty in addition to income tax unless an exception applies. Required Minimum Distributions (RMDs) begin at age 72.

Plan sponsors are responsible for ensuring the plan remains in compliance with IRS and Department of Labor regulations. This includes annual nondiscrimination testing (unless Safe Harbor), timely remittance of employee contributions, Form 5500 filing, and participant disclosures. Global Advisers partners with third-party administrators and recordkeepers to handle these duties on your behalf.

Yes. Many plans combine a traditional 401(k) with a profit-sharing component, allowing the employer to make discretionary contributions on top of employee deferrals. This structure is common in plans seeking to maximize contributions for owners and key employees.

Investment menus can be customized and may include mutual funds, ETFs, target-date funds, model portfolios, or self-directed brokerage windows. Global Advisers provides professional investment oversight and works with plan sponsors to design a menu that reflects the needs of participants and fiduciary standards.

Employees can leave their 401(k) funds in the plan, roll them over to an IRA or a new employer’s plan, or cash them out (which may trigger taxes and penalties). The employer has responsibilities regarding timely notification and options available to the participant.

Yes. A Defined Benefit Plan can be frozen (suspending new benefit accruals) or terminated (fully shutting down the plan), but this must be done carefully and with proper planning. Upon termination, participants typically receive a lump-sum rollover or annuity based on their accrued benefit.

Yes. Defined Benefit Plans require an annual Form 5500 filing and actuarial certification. These filings confirm that the plan is properly funded and in compliance with IRS and Department of Labor rules. Global Advisers partners with actuaries and plan administrators to handle these responsibilities on your behalf.

At retirement, the plan provides a guaranteed monthly benefit based on the formula defined in the plan document. In some cases, participants may be offered a lump-sum distribution instead. Distributions follow similar rules to other qualified plans, including Required Minimum Distributions (RMDs) beginning at age 72.

If you hire employees, they may need to be included in the plan based on eligibility rules and nondiscrimination requirements. However, the plan can often be designed to favor owners or limit participation based on minimum service and age requirements. We work closely with third-party administrators and actuaries to manage this process.

Employer contributions are tax-deductible, which can significantly reduce current-year taxable income. Investment earnings grow tax-deferred, and distributions are taxed as ordinary income in retirement. For high earners, this structure offers one of the most powerful ways to lower taxes and build retirement wealth.

Generally, yes. Once the plan is established, the business is expected to fund it annually based on the actuary’s calculation. However, contributions can be adjusted somewhat from year to year depending on plan performance and funding level. Plans can also be frozen or terminated with proper notice and guidance.

Yes. A Defined Benefit Plan can be combined with a 401(k)/Profit-Sharing Plan to maximize retirement contributions. This is often referred to as a “combo plan” and is commonly used by business owners with higher income levels who want to contribute as much as possible in a tax-advantaged way.

There is no fixed IRS contribution limit like with other plans. Annual contributions are based on the retirement benefit the plan is designed to provide, up to a maximum lifetime benefit set by the IRS (e.g., $275,000/year as of 2024). Contributions can often exceed $100,000–$300,000 per year depending on age and compensation.

Contributions are actuarially calculated based on factors such as age, compensation, years to retirement, and the targeted benefit at retirement. The older the participant and the higher the income, the larger the allowable contribution—often well above the limits of SEP IRAs or 401(k)s.

Defined Benefit Plans are ideal for high-income business owners, professionals, and self-employed individuals—particularly those over age 45—who want to make large tax-deductible contributions and accelerate retirement savings. They are especially effective for businesses with no or few employees, where most of the benefit can be directed to the owner.

At Global Advisers, there are no setup or maintenance fees. Our firm charges a transparent, asset-based management fee. Depending on your custodian and investment selections, additional fund expenses or transaction costs may apply.

To make salary deferral contributions for the current tax year, the plan must be established by December 31. Employer profit-sharing contributions can typically be made up to your tax filing deadline, including extensions.

A Solo 401(k) is only for businesses with no full-time employees other than a spouse. If you hire eligible employees, your plan may need to be converted into a traditional 401(k), and additional compliance requirements would apply.

Yes. If your spouse earns income from the business, they can participate in the Solo 401(k) and make their own employee and employer contributions, effectively doubling the household’s contribution limits.

Not initially. If your Solo 401(k) plan assets exceed $250,000 at the end of the plan year, you are required to file IRS Form 5500-SF annually. If assets remain below that threshold, no filing is required.

In many cases, yes. Some custodians allow Roth contributions within a Solo 401(k), which means you can contribute after-tax dollars and potentially withdraw earnings tax-free in retirement if qualified.

Contributions are typically tax-deductible, which reduces your taxable income. Investment earnings grow tax-deferred until withdrawn in retirement. If your plan includes a Roth option, you can also make after-tax contributions that may be withdrawn tax-free under certain conditions.

Yes. With a Solo 401(k), you can make contributions in two capacities. As the employee, you can contribute salary deferrals up to the IRS annual limit. As the employer, your business can also make a profit-sharing contribution, allowing for a much higher total annual contribution compared to traditional IRAs or SEP IRAs.

A Solo 401(k) is available to self-employed individuals or business owners with no full-time employees other than a spouse. This includes sole proprietors, LLCs, S corps, and C corps. You must have earned income from the business and hold at least a 5% ownership stake.