The Simplified Employee Pension (SEP) Individual Retirement Account (IRA) is a simple but valuable way for small business owners looking to offer a retirement benefit. Through this plan, you can make tax-deferred retirement contributions on behalf of each employee. Because this plan does have relatively low contribution limits, it can be excellent for sole proprietorships and partnerships.
A Safe Harbor 401(k) plan is a type of 401(k) with certain built-in elements — like a guaranteed employer match — that makes the plan exempt from nondiscrimination testing. Nondiscrimination testing is one of the biggest hurdles for business owners looking to offer a traditional 401(k) plan.