Choosing between a Small Business 401(k) and a SIMPLE IRA is a critical decision for small business owners aiming to offer valuable retirement benefits to employees. A Business 401(k) typically suits companies with over 100 employees, offering higher contribution limits and flexible employer matching options. In contrast, a SIMPLE IRA is ideal for businesses with fewer than 100 employees, with easier setup, required 3% employer matching, and wider investment choices. While fees are generally similar, they vary with asset size. For small businesses, consulting a financial professional can help determine the most cost-effective retirement plan to attract and retain employees.