All of the following types of plans are reserved for smaller employers EXCEPT?

The reason why 401(k) plans are not reserved for smaller employers is that they are designed to accommodate businesses of all sizes. Unlike SIMPLE IRAs, SEPs, and SIMPLE Plans, which have specific provisions and limits tailored for small business owners, 401(k) plans can be established by both small and large employers. They offer greater flexibility in terms of contribution limits and can support a larger number of employees, making them a viable option for companies with more extensive workforces.

In contrast, SIMPLE IRAs, SEPs, and SIMPLE Plans are aimed at smaller employers. They come with lower contribution limits and simplified administration requirements, making them more accessible and easier to manage for those running smaller organizations. This distinction highlights the practicality and scalability of 401(k) plans, positioning them as a strong retirement savings tool for a broad range of businesses.