Meeting Retirement Plan Objectives

Maria owns a small consulting firm with 12 employees. She wants to establish a retirement plan that is easy to administer, has low costs, and requires minimal annual reporting. She also wants employees to be able to contribute to the plan through salary deferrals.

Which of the following options would best meet Maria’s objectives?

1. 401(k) plan with profit-sharing feature
2. SIMPLE IRA with mandatory employer contributions
3. SEP IRA with optional employee contributions
4. Defined benefit pension plan