The actual deferral percentage (ADP) test and actual contribution percentage (ACP) test are both required to be administered every year to ensure traditional 401(k) plans are in compliance. While ADP considers only employee deferrals, ACP also includes employer contributions. However, plan sponsors must conduct both tests regardless of whether or not they match. If you’re…
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401(k) Vesting Schedule: Cliff vs Graded [+ Examples]
A 401(k) vesting schedule is used by employers to control when ownership of retirement contributions transfer to employees. While many 401(k)s vest contributions immediately and no schedule is needed, there are two other types of schedules, cliff and graded, that employers can use to vest retirement contributions over time or all at once. How a…
6 Best 403(b) Companies 2018
A 403(b) tax-deferred annuity plan is a retirement plan used by nonprofits to help employees save through a combination of pretax and post-tax contributions. To identify the best 403(b) companies, we looked for providers with the widest array of cost-effective investment options, best customer service and additional services to help employers and participants. provides effective…
How to Set Up a Solo 401(k) in 6 Steps
A Solo 401(k) is an employer-sponsored retirement plan that allows self-employed individuals to contribute up to $56,000 pretax, including $19,000 of employee deferrals. How to set up a Solo 401(k) requires just six steps that hinge on picking a provider, but having just one participant makes it possible to complete in just a matter of…
403(b) vs 401(k): Rules, Limits, Costs & Which Is Best 2018
403(b)s and 401(k)s have similar structures but are applied in very different circumstances. 403(b)s can only be used by nonprofits, while 401(k)s can only be used by small businesses. Not-for-profits like churches, public schools, and government agencies use a 403(b) vs 401(k) plans, which are used by for-profit companies and the self-employed. If you’re a…
6 Best SEP-IRA Providers 2018
A SEP-IRA allows small business owners to save up to $56,000 through tax-free profit-sharing contributions but require employers to fund all employee contributions. Choosing the right provider can save you time, money and prevent administration headaches. We’ve identified the best SEP-IRA providers and compare the best six below, including their costs and investment options. Top…
403(b) Plan Rules, Contribution Limits, & Deadlines 2018
403(b) plans are alternative retirement plans only available to non-profits like charities, churches, public schools, health systems, and government agencies. Like retirement plans used by for-profit businesses, 403(b)s incentivize employee saving through deferrals and employer contributions. Combined contribution limits are $56,000 and can be invested only in annuities and mutual funds. provides effective 403(b) plans…
How to Open a SEP IRA in 6 Steps
SEP IRAs are employer-sponsored retirement plans allowing employers to contribute up to $56,000 or 25% of their pre-tax income each year. How to open a SEP IRA for you and your employees is quick and easy, once you understand how SEPs work and determine your eligibility. A good provider can help you with the rest….
How to Set Up a SIMPLE IRA in 5 Easy Steps
SIMPLE IRAs are employer-sponsored retirement plans that allow employees and employers to save up to $26,000 in pre-tax contributions each year. The process for setting up a SIMPLE IRA is easy and inexpensive once you’ve determined your eligibility. The right provider will help you complete forms, get employees enrolled, and administer your plan. Looking to…