For an updated list of available retirement plans and annual plan limits, reference our employee retirement plan chart.

If you want to make the maximum IRA contribution for employees of your small business, consider a SIMPLE IRA. As long as you don't have another retirement plan in place, you can establish a SIMPLE IRA for every employee who will earn $5,000 in a calendar year and has earned $5,000 in any two preceding years.

SIMPLE IRA regulations allow both you and your employees to put the maximum IRA contribution into the plan. As an employer, you can choose to match up to 3 percent of compensation or a fixed amount of 2 percent for a maximum of $4,200 per year. Employees can then opt to invest up to $10,000 into the plan.

While the employee's role is voluntary, you must make these contributions to all eligible employee accounts in lieu of paying for costly discrimination testing required for 401k plans. However, if you adhere to the regulated per employee minimums, it isn't necessary to make the maximum IRA contribution.

With a SIMPLE IRA, you have less administrative duties, lower fees, and won’t have to provide investment options for employees. You can also reduce contributions to 1 percent during lean years. However, your employees will own 100% of the proceeds of the IRA immediately without a vesting schedule. You also have lower annual maximum IRA contributions to a SIMPLE IRA vs. a 401k plan.

SEP IRA Retirement Plan
You can help employees maximize their retirement savings and get a larger tax benefit for your business with an SEP IRA retirement plan.

This IRA, funded exclusively by the employer, is for self-employed people and small businesses with at least one employee 21 years or older. You can offer an SEP IRA retirement plan as a supplement to an existing retirement plan. It allows you to contribute up to 25% of employee compensation, but you must put in the same percentage to all eligible employees.

SEP IRA retirement plan participants enjoy high contribution levels and can scale back or cease contributions every year, but this plan isn’t suited for large businesses. Also note that employees immediately own all funds in the plan without vesting.