Simplified Employee Pensions (SEPs) are a common option for small businesses with 100 or fewer employees. Through SEPs, employers make use of Individual Retirement Accounts (IRAs) as a simplified way of providing their employees with pension benefits. The contributions are not considered part of an employee's gross income, and employees do not pay taxes until withdrawals are made.

Savings Incentive Match Plans for Employees (SIMPLEs) utilize either IRAs or 401(k) plans. They are also tax-advantaged plans that are used by small businesses with 100 or fewer employees. Subject to restrictions, employers may choose to match employee contributions up to a certain percentage of salary; or they may also choose not to match, but rather to make contributions on behalf of all eligible employees, based on a percentage of salary. Again, contributions are pre-tax, and payment of taxes is deferred until withdrawals are made.