Retirement Plans for Your Business

Retirement Plans for Your Business

Retirement plans are an important benefit for your employees and a tax benefit for you. The right plan can attract good people and help them succeed financially while staying within your financial means and reducing your taxes.

As you can imagine, retirement plan rules are complex. At D.A. Davidson & Co., we take the hassle and confusion out of choosing, setting up, and operating the right plan for your business.

With our help, you can select, customize, introduce, manage and administer the right retirement plan for your business.

Retirement plan services from D.A. Davidson & Co. are:

  • Low cost: Our prototype plans are pre-approved by the IRS. Utilizing a prototype saves time and reduces paperwork and costs.
  • Flexible: The prototype plan that best meets your needs can be customized. We explain and help you choose options regarding contribution levels, employee eligibility, vesting schedules, and other plan features.
  • Professional: We provide accurate, in-depth information so that you know exactly what you’re getting into. We understand the complexities of retirement plans and the needs of businesses.
  • Personal: We get to know you and want what’s best for you. We want to build a relationship with your business, providing financial services to help you prosper.
  • Complete: D.A. Davidson & Co. can be your single retirement plan source. Beyond the plan setup, we can arrange services to help you educate your employees, conduct enrollment meetings, and administer your selected plan.


See the below summary to identify the types of plans that might interest you.

Let us know, and we’ll help you understand the specifics for your business. From there, we can arrange everything you need to set up the right plan for your business get it up and operating

Plan Type1 Simplified Employee Pension Plan (SEP) Simple IRA Profit-Sharing Plan 401(k) Deferral Plan Money Purchase Pension Plan
Contributions by Employer Yes Yes Yes Yes Yes
Contributions by Employee No Yes No Yes No
Vesting 3: 100% Immediate4 Yes Yes No No No
Vesting: Based on years of service5 No No Yes Yes Yes
Plan Administration: Minimal Yes Yes No - Substantial No - Substantial No - Substantial
Annual Tax Filing No No Yes Yes Yes
Employee Borrowing on Account No No Yes Yes Yes

Contribution Profiles2

Simplified Employee Pension Plan (SEP)

Employer annually contributes 0-25% of total compensation of eligible employees. Employer contribution rate can vary from year to year, but generally must be the same percent for all eligible employees in any given year.

Simple IRA

Employees contribute up to $12,5006 each in deferred income through payroll deduction. Employer either (1) matches employee contributions dollar for dollar up to 3% of individual employee compensation, or (2) contributes 2% of individual compensation for each eligible employee. If age 50 or older, catchup contribution of $2,500 may be allowed.

*Note: Employer’s choice of either 3% match or 2% contribution option can vary from year to year, but generally must be the same percent for all eligible employees in any given year.

Profit-Sharing Plan

A maximum employer contribution of 0-25% of total employee compensation will be deductible. Employer has choices in establishing vesting schedules, contribution amounts, and eligibility. *Note: Along with 401(k) and money purchase pension plan, allows some flexibility on who can be excluded from the plan.

401(k) Deferral Plan

Similar to a profit-sharing plan (0-25% employer contribution), except each employee may be able to contribute up to $18,0007 in deferred compensation through payroll deduction. If age 50 or older, a $6,000 catch up contribution may be allowed.

*Note: For many employees, allows a greater self-contribution than under a Simple IRA.

Money Purchase Pension Plan

The employer contribution rate is 0-25% of total employee compensation. A profit sharing plan may be a better choice since it also allows a 25% contribution.

*Note: Percent employer contribution selected in first year of plan locks in for subsequent plan years, with some provisions for amendment.

1These plan descriptions are not all-inclusive. Before adopting any retirement plan, obtain professional legal and tax advice.

2All employer contributions are generally tax-deductible. Also, for any employee, the maximum total employee/ employer contribution in any year is the lesser of (1) $53,000, or (2) 100% of the employee’s compensation. Age 50 and over may contribute additional catch-up employee deferral of $6,000. For Simple IRA contribution limits see the Simple IRA contribution profile.

3An employee is said to be vested when (s)he becomes entitled to all employer contributions made by the employer.

4Under 100%, immediate vesting, the employee is entitled to all employer contributions immediately upon their deposit. Further, these contributions can be withdrawn by the employee at any time, subject to tax penalties. This approach, while attractive to the employee, may defeat the employer’s goal of helping employees plan for retirement.

5 Under vesting based on years of service, the employee becomes entitled to employer contributions after completing a specified period of employment. Upon vesting, the employee may make withdrawals only in the event of certain maturing events, including termination of service, retirement, death, or disability.

62015 - $12,500. Changes for future tax years are then indexed in $500 increments.

72015 - $18,000. Changes for future tax years are indexed in $500 increments.