Plan Comparison
RETIREMENT PLANS FOR INDIVIDUALS
While both types of accounts are very similar in nature and provide the same investment options, there are a handful of key differences.
Use this chart to help determine which one may be right for you.
TRADITIONAL IRA
$395
Tax-Deferred Growth
ANNUAL CONTRIBUTION
$6,000
CATCH-UP CONTRIBUTION
(Over Age 50)
$1,000
AGE REQUIREMENT
Contribute Until 70 1/2
INCOME REQUIREMENTS
No
REQUIRED DISTRIBUTIONS
Yes (Starts Age 70 1/2)
WITHDRAWAL TAXES
Yes
EARLY-WITHDRAWAL PENALTIES
10% Penalty
(Under Age 59 1/2)
ROTH IRA
$395
Tax-Free Growth
ANNUAL CONTRIBUTION
$6,000
CATCH-UP CONTRIBUTION
(Over Age 50)
$1,000
AGE REQUIREMENT
No
INCOME REQUIREMENTS
Yes
REQUIRED DISTRIBUTIONS
No
WITHDRAWAL TAXES
No (If 5-year Rule is Met)
EARLY-WITHDRAWAL PENALTIES
10% Penalty on Earnings
(Under Age 59 1/2)
RETIREMENT PLANS FOR SMALL BUSINESSES
SEP IRA
$445
Yes
TAX BENEFITS
Tax-Deferred Growth
EMPLOYER ANNUAL CONTRIBUTION
Up to $56,000
EMPLOYER CATCH-UP CONTRIBUTION
(Over Age 50)
No
EMPLOYEE ANNUAL CONTRIBUTION
$6,000
EMPLOYEE CATCH-UP CONTRIBUTION
(Over Age 50)
$1,000
PERSONAL LOAN FROM ACCOUNT
No
WITHDRAWAL TAXES
Yes
EARLY-WITHDRAWAL PENALTIES
10% Penalty
(Under Age 59 1/2)
SIMPLE IRA
$445
Yes
TAX BENEFITS
Tax-Deferred Growth
EMPLOYER ANNUAL CONTRIBUTION
Up to 3% of Employee Compensation
EMPLOYER CATCH-UP CONTRIBUTION
(Over Age 50)
No
EMPLOYEE ANNUAL CONTRIBUTION
$13,000
EMPLOYEE CATCH-UP CONTRIBUTION
(Over Age 50)
$3,000
PERSONAL LOAN FROM ACCOUNT
No
WITHDRAWAL TAXES
Yes
EARLY-WITHDRAWAL PENALTIES
10% Penalty
(Under Age 59 1/2)
25% Penalty
(If within first 2 years of plan)
SOLO 401(k) PLAN
$495
Yes
TAX BENEFITS
Tax-Deferred & Tax-Free Options
EMPLOYER ANNUAL CONTRIBUTION
Up to $56,000
EMPLOYER CATCH-UP CONTRIBUTION
(Over Age 50)
$6,000
EMPLOYEE ANNUAL CONTRIBUTION
$19,000
EMPLOYEE CATCH-UP CONTRIBUTION
(Over Age 50)
$6,000
PERSONAL LOAN FROM ACCOUNT
Yes
WITHDRAWAL TAXES
Defined By Plan
EARLY-WITHDRAWAL PENALTIES
10% Penalty
(Under Age 59 1/2)
Frequently Asked Questions
How does your fee structure differ from other custodians who custody traditional and alternative assets?
Provident Trust Group offers a flat-rate annual fee. This differs from many other alternative asset custodians who may increase your annual fee based on an increase in the number of assets you select, value of your assets, or even the purchase of a different asset class.
Most custodians of traditional assets collect fees and/or commissions based off of the amount of trades or recommendations of investment choices. For our full fee schedule, click here.
What types of investments are prohibited with retirement accounts?
- Artwork,
- Rugs,
- Antiques,
- Metals – with exceptions for certain kinds of bullion,
- Gems,
- Stamps,
- Coins – (but there are exceptions for certain coins),
- Alcoholic beverages, and
- Certain other tangible personal property.
For more information, click here for the IRS Website.