Common Retirement Plans For Small Business Owners (2026)

2026 · COMMON RETIREMENT PLANS FOR SMALL BUSINESS OWNERS
WHO CAN PARTICIPATE IN THIS PLAN?HOW MUCH CAN PARTICIPANTS CONTRIBUTE TO THIS PLAN (ELECTIVE DEFERRALS)?HOW MUCH MUST AN EMPLOYER CONTRIBUTE TO THIS PLAN?WHAT IS THE AGGREGATE ANNUAL CONTRIBUTION LIMIT (EMPLOYER AND PARTICIPANT CONTRIBUTIONS AND FORFEITURES)?SOLO 401(K)SAFE HARBOR 401(K)401(K)PROFIT SHARING PLANSIMPLE IRASEP IRASelf-employed individual and spouse who is active in the business (e.g., employee, co-owner)Up to the lesser of 100% of earned income or $24,500 ($8,000 catch-up age 50+)Employer has full discretion whether to contribute or notUp to the lesser of 100% of earned income2 or $72,000 ($80,000 with catch-up) (employer contribution can't exceed 25% of gross W-2 income per employee, 20% of net income for sole proprietor/partnership)Eligible employees (can be limited to employees age 21 and over, with at least one year of service (1,000 hours), or 2 years of service if 100% vested)1Up to the lesser of 100% of earned income or $24,500 ($8,000 catch-up age 50+)Employer must either (1) make a nonelective contribution of 3% of participant's compensation or (2) match participant deferrals up to 4% of their compensation, depending upon planUp to the lesser of 100% of compensation2or $72,000 ($80,000 with catch-up)Eligible employees (can be limited to employees age 21 and over, with at least one year of service (1,000 hours), or 2 years of service if 100% vested)1Up to the lesser of 100% of earned income or $24,500 ($8,000 catch-up age 50+)Employer has full discretion whether to contribute or notUp to the lesser of 100% of compensation2or $72,000 ($80,000 with catch-up)Eligible employees (can be limited to employees age 21 and over, with at least one year of service (1,000 hours), or 2 years of service if 100% vested)1Participants cannot contribute to this planEmployer has full discretion whether to contribute or not, up to 25% of the participant's compensationUp to the lesser of 25% of compensation2 or $72,000Employees who earned at least $5,000 in any prior 2 years and are expected to earn $5,000 this yearThe lesser of 1) 100% of compensation, or 2) $17,000 ($4,000 catch-up age 50+) plus 10% (if eligible).Employer must make 2% in nonelective contributions or 3% in matching deferrals. Additional nonelective contributions are also allowed (i.e., the lesser of $5,000 or 10% of employee's compensation).Sum of maximum employer and participant contributions aboveWHAT EMPLOYER IS ELIGIBLE TO OFFER THIS PLAN?Business or self-employed individual with no employees (other than a spouse)Any employerAny employerAny employerEmployer with 100 or fewer employees who earn at least $5,000 in a year (and no other retirement plan — unless for collective bargaining employees)Any employerEligible employees, including household employees (can be limited to employees age 21 and over, with service in 3 of the prior 5 years and earning at least $800 in 2026)Participants cannot contribute to this planEmployer has full discretion whether to contribute or not, but generally must make uniform % payments to all participantsUp to the lesser of25% of compensation2or $72,,000 (special rules apply for self-employed)
© fpPathfinder.com. Licensed for the sole use of Ryan Weiser, CFP® of Weiser Financial Planning. All rights reserved. Used with permission. Updated 01/02/2026.
2026 · COMMON RETIREMENT PLANS FOR SMALL BUSINESS OWNERS
IS THIS PLAN SUBJECT TO NONDISCRIMINATION TESTING?ARE CONTRIBUTIONS VESTED?WHEN IS THE DEADLINE FOR ESTABLISHING THIS PLAN FOR THIS TAX YEAR?WHEN IS THE DEADLINE FOR FUNDING EMPLOYER CONTRIBUTIONS FOR THIS TAX YEAR?SOLO 401(K)SAFE HARBOR 401(K)401(K)PROFIT SHARING PLANSIMPLE IRASEP IRANoYes, 100%Income tax filing deadline excluding extensions3Income tax filing deadline including extensionsNoYes for 100% of participant and employer safe harbor contributions, but a vesting schedule is allowed for additional employer contributionsLast day of employer's taxable yearIncome tax filing deadline including extensionsYesYes for 100% of participant contributions, but a vesting schedule is allowed for employer contributionsLast day of employer's taxable yearIncome tax filing deadline including extensionsYesA vesting schedule is allowedIncome tax filing deadline including extensionsIncome tax filing deadline including extensionsNoYes, 100%October 1 (if business is formed after this date, as soon as feasible)Income tax filing deadline including extensions (unless DOL rules apply earlier date)MAY LOANS BE PERMITTED?YesYesYesYesNoNoNoYes, 100%Income tax filing deadline including extensionsIncome tax filing deadline including extensionsCAN THIS PLAN OFFER A ROTH PROGRAM?YesYesYesNoYesYesMUST FORM 5500 BE FILED ANNUALLY WITH THE IRS?Yes, if plan balance is above $250,000YesYesYesNoNoARE PARTICIPANTS PERMITTED TO WITHDRAW FROM THIS PLAN?Withdrawals are not permitted until a specified event (e.g., age 59.5, separation from service, or other trigger per plan) or hardship (if permitted).Withdrawals are subject to income tax (unless Roth) and possible 10% penaltyWithdrawals are not permitted until a specified event (e.g., age 59.5, separation from service, or other trigger per plan) or hardship (if permitted).Withdrawals are subject to income tax (unless Roth) and possible 10% penaltyWithdrawals are not permitted until a specified event (e.g., age 59.5, separation from service, or other trigger per plan) or hardship (if permitted).Withdrawals are subject to income tax (unless Roth) and possible 10% penaltyWithdrawals are permitted, but are subject to income tax and possible 10% penalty Withdrawals are permitted, but are subject to income tax (unless Roth) and possible 10% penalty (25% penalty within first 2 years)Withdrawals are permitted, but are subject to income tax (unless Roth) and possible 10% penalty *Many factors / features may be modified by the employer. Review plan options and terms.1 Note the changes introduced by Section 112 of the SECURE Act and Section 125 of SECURE Act 2.0 regarding long-term part-time employees.2 401(a)(17) compensation limit of $360,000 applies.3 Income tax filing deadline excluding extensions applies to sole proprietorships or LLCs taxed as a sole proprietorship.
© fpPathfinder.com. Licensed for the sole use of Ryan Weiser, CFP® of Weiser Financial Planning. All rights reserved. Used with permission. Updated 01/02/2026.
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Weiser Financial Planning, LLC is a Fiduciary, and Fee-Only Financial Planning Firm. A Registered Investment Adviser in Lewis Center, OH that provides Comprehensive Financial Planning and Investment Management Services to clients in the Columbus & Central Ohio area, as well as Nationwide though online virtual meetings. Ryan J. Weiser CFP®, CDFA® is the president and founder of Weiser Financial Planning LLC. He helps people connect their money with the things that are most important to them by making wise financial decisions, so they can maximize their money and live the best life possible. 

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