Retirement plans for business owners.

Short version. Solo 401(k) is for owner-only businesses (a spouse can also contribute). SEP IRA is for sole proprietors and small teams that want a high deduction and very little paperwork. SIMPLE IRA is for businesses with up to 100 employees that want a payroll-deferral plan with no annual filing. ESOP is for C-corps and S-corps that want employees to own shares in the company. If you are not sure, talk to a specialist.

Sometimes. A SIMPLE IRA must be the only retirement plan the business offers in any year it is active, so you cannot pair a SIMPLE with a Solo 401(k) or SEP. A SEP IRA and a Solo 401(k) can be sponsored by the same business in certain structures, though the combined contribution limits still apply. Any of these can sit alongside a personal Traditional or Roth IRA you contribute to from outside the business.

Each plan has its own deadline. SIMPLE IRA must be adopted by October 1 to cover the current year (later only for brand-new businesses). SEP IRA can be adopted as late as the business tax-filing deadline plus extensions for the year the contribution applies to. Solo 401(k) must be in place by December 31 for employee deferrals to count; employer contributions can be made later with an extension. ESOP follows the same year-end rule as other qualified plans.

The plan keeps going, but the rules expand. A Solo 401(k) stops being a one-person plan the year you hire a non-spouse employee who meets the plan’s eligibility, and you generally need to convert to a regular 401(k) or close it. A SEP IRA and a SIMPLE IRA both already accommodate employees, so growing the team usually just means covering more people under the same plan.

Yes on three of the four. SECURE 2.0 §601 unlocked Roth contributions on SEP IRA, SIMPLE IRA, and Solo 401(k) (the Solo 401(k) already had Roth deferrals before that). ESOP is funded with employer stock, which is its own category. IRS overview of small-business plan options.

Yes. Self-directing is the reason most owners come to Accuplan. The same Solo 401(k), SEP IRA, or SIMPLE IRA can hold real estate, private equity, precious metals, cryptocurrency, and private loans alongside any conventional investments. Brokerage versions of these plans generally cannot.

Accuplan administers the account. We provide the plan document, open the participant accounts, process contributions and transactions, and prepare the year-end IRS forms (5498 for IRAs, 5500 for the plans that require it). The business handles its own payroll, its own employee notices, and any audit or appraisal requirements from outside specialists. American Estate & Trust acts as custodian and holds the assets.