What is the difference between a SIMPLE IRA and a 401(k)?

What is the difference between a SIMPLE IRA and a 401(k)?

1

Not currently offering any employee retirement plan but looking at options appropriate for a small business with less than 20 employees.

benefits retirement-benefits

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by v_meadows
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by Dorian31

0

SIMPLE IRAs are typically a little easier to administer and potentially less expensive for small businesses than a 401k, but they have stricter limitations for both employer and employee contributions. See the link to Fidelity's comparison of retirement plan options for small businesses as an example of the basic differences.

https://www.fidelity.com/retirement-ira/small-business/compare-plans