There are four major types of retirement plans available for private companies. Which option is best for you will depend on several factors including the size of your company, your organizational structure and what features you want in your retirement plan.

If you are unsure which type of retirement plan is right for you, answer a few questions and we can give you some options. You should also consult with your legal counsel or tax adviser.

Plan Type	Tax Advantages for Company	Who Funds?	Number and Type of Employees	Annual Contribution Limits
401(k) Plan/Profit Sharing	Yes	Employee and Employer (employer contributions may be optional)	5 or more	Employee: The 402(g) limit allows up to a maximum of $11,000 for defferals in 2002. Employer/employee combined: The lesser of 100% of compensation, up to a maximum of $40,000 for the 2002 plan year.
Simple Individual Retirement Account (Simple-IRA)	Yes	Employee and Employer	1 to 100	Employee: Up to 100% of compensation, $7,000 for the 2002 plan year. Employer: Either match employee contributions dollar for dollar up to 3% of compensation (maximum $7,000 for the 2002 plan year); can be reduced to as low as 1% in any 2 out of 5 yrs. Or contribute 2% of each eligible employee's compensation up to $4,000 for 2002.
SEP-IRA	Yes	Employer Only	Self Employed	Up to 15% of compensation, up to a maximum of $30,000 for the 2002 plan year.
Keogh	Yes	Employer Only	Self Employed	Up to 25% of compensation, up to a maximum of $40,000 for the 2002 plan year.

401(k) Plan/Profit Sharing

• A tax-advantaged retirement account to which both an employee and employer can contribute. However, a 401(k) plan is the only retirement plan that, under most circumstances, may not require employer contributions.
• Offers greater flexibility in determining eligibility requirements for participating employees and allows employees to put more money in their retirement plan than other types of plans.
• Available to companies with five or more employees.

Simple Individual Retirement Account (Simple-IRA)

• A tax-advantaged retirement account to which both an employee and employer can contribute.
• Plan rules state that all eligible employees must be covered by the plan if they meet certain earnings requirements.
• Available to any company with 100 or fewer employees that does not currently maintain any other retirement plan.

SEP-IRA

• A tax-advantaged retirement account to which only the employer contributes.
• Individuals who earn self-employment income are eligible.
• Easy to set up and maintain.
• Only available to employers who do not currently maintain any other retirement plan.

Keogh

• A tax-advantaged retirement account to which the employer contributes.
• Individuals who earn self-employment income are eligible.
• Allows higher maximum contributions than SEP-IRA.