What is the best type of Retirement Plan for my Business & Goals?

SPC is here to help - useful information without the product sales pitch.

There are many types of plans and endless plan design options. How do you know where to start? We've put together a quick guide to the different types of plans with some plain-English explanations. Simply scroll down to see major plan types, click the link to jump to the explanation of each plan.

If you'd like more information on any type of plan or have questions, please contact us. We'd love to speak with you.

What type of Plan is best for my Business?

Click below on the type of plan to skip to the detailed description of each type...

Owner-Only business or companies with thousands of employees. Great option for employees & employer.

A good option for Non-Profit & Municipalities, Hospitals, or Educational entities.

Only for businesses with fewer than 100 employees. More of a rigid starter plan.

Best Option for companies with Employees to add extra flexibility for benefits.

A better option for Non-Profits who wish to add extra benefits for executives.

Allows very large contributions annually for owners with conditions.

Businesses with fewer than 10 employees. Employer-only contributions.

Employer-Only Contributions, but can include 6 yr vesting.

Old-Style employer pension plan with added benefits for additional years of service.

Is a 401(k) Plan right for my company?

401k Plans are the gold standard in current employee benefit plans. They offer great flexibility in design & administration. They also provide a great foundation for revisions over time or additional plan/benefit pairings as your needs change.

Employees can save for themselves through 401k deferrals (from their own paychecks to save for their own retirement). In 2025, employees under 50 years old can save up to $23,500 annually for themselves (including executives & owners).

Employees can choose whether their own contributions are Pre-Tax or as ROTH and typically they can select their own investments inside the plan.

Employers can choose to also offer benefits to employees . This could be an employer match (with immediate vesting or prolonged vesting). Or, an employer might offer a flat 3% - 6% guaranteed benefit to staff annually. Some plans provide no employer contributions at all.

401k plans are suited from single-person companies or companies with thousands of employees. They require annual administration & compliance testing, but the benefits, flexibility, & employee retention makes 401(k) Plans the most popular form of retirement plan in the USA. Contact us today to learn more...

Employee Choice.

- Employees can save for their own retirement
- Employees can generally select their own investments
- Employees can choose Pre-Tax or ROTH deferrals

Employer Choice.

- Employers can choose to offer a company match
- Employers can choose eligibility (Day 1 or up to 1 year)
- Easy to manage & for employees to understand

Company Benefit.

Flexible options for design, company tax deductions, and most employees understand how 401k plans operate.

Is a 401(k) Profit Sharing Plan right for my company?

All of the benefits and design flexibility of a 401(k) plan, but with the extra capability to add additional benefit for the ownership, executives, or individual productivity bonuses for employees.

401(k) Profit Sharing Plans allow the company to provide additional benefits annually to select groups of employees or as a flat benefit to all participants in the plan.

Imagine being able to tell your staff that if the company performs well, they might be able to get an additional bonus in the retirement plan - a great employee incentive plan.

All Profit Sharing contributions made to the plan from the company are 100% tax deductible for the business AND incur no payroll taxes. Contributions are typically made annually before the tax filing date of the company (in order to list the tax deduction on the corporate tax filing).

Profit Sharing contributions are 100% discretionary, meaning that the contribution does NOT need to be made every year AND the amount can vary from year to year. Benefits can be weighted towards ownership or executives increasing employee retention of key employees.

Employee Choice.

- Employees can save for their own retirement
- Employees can generally select their own investments
- Employees can choose Pre-Tax or ROTH deferrals

Employer Choice.

- Employers can offer a company match paired with PS
- Vesting Provisions up to 6 years
- Profit Sharing does not need to be made every year

Company Benefit.

Increased tax deductions for the company and increased employee retention with the contribution incentive