Basic Retirement Plan Types

Plan Type Limits Catch-up Provision (+ 50) Set-up Deadline Contribution Deadline Employer Deduction Employer Contribution Discrimination Testing Loans Vesting Maximum Eligibility Rules
SIMPLE
(IRA-based primarily employee funded)
$10K in 2005 & 2006
$10,500 in 2007
$2K in 2005
$2,500 in 2006 & 2007
10/1 Salary deferrals must be deposited 30 days after the end of the month. Matching must be made by filing deadline Allowable contributions deductible Required matching or 2% non-elective contribution None N/A Immediately Vested Age: no limits
Service: 2 years
Salary: at least $5K
SEP
(IRA-based primarily employer funded)
25% of compensation
20% for unincorporated
$44K Maximum in 2006 ($45K in 2007)
N/A Tax filing deadline with ext. Filing deadline including extension 25% of participants compensation % can vary each year None N/A Immediately Vested Age: 21
Service: 3 out of 5 years
Salary: at least $450
Profit-Sharing (Qualified Plan primarily employer funded) 25% of compensation
20% for unincorporated
$44K Maximum in 2006 ($45K in 2007)
N/A Year end Filing deadline including extension 25% of participants compensation % can vary each year Covered   employee
Allocation of   contribution
Top heavy
Permitted 5 year cliff or graded over 7 years Age: 21
Service: 1 year, 1K hours of service per year
Money Purchase (Qualified Plan) 25% of compensation
20% for unincorporated
$44K Maximum in 2006 ($45K in 2007)
N/A Year end Filing deadline including extension or minimum funding deadline of 9/15 for calendar year plans 25% of participants compensation % Determined by employer when plan is adopted Covered   employee
Allocation of   contribution
Top heavy
Permitted 5 year cliff or graded over 7 years Age: 21
Service: 1 year, 1K hours of service per year
401(k) (Qualified Plan primarily employee funded) $14K in 2005
$15K in 2006
$15,500 in 2007
$4K in 2005
$5K in 2006 & 2007
Year end 25% of all participants compensation EXCEPT salary deferral contributions Optional % can vary each year Covered   employee
Allocation of   contribution
Top heavy
Permitted Salary deferral contributions immediately vested, match may be vested over time

Employee Money: 100%

Employer Money: 5 year cliff or graded over 7 years

Age: 21
Service: 1 year, 1K hours of service per year
Solo or Owner-only 401(k) (Qualified Plan both employee & employer funded) Base same as 401(k) with an added 25% of compensation - 20% for unincorporated $44K Maximum in 2006 ($45K in 2007) $4K in 2005
$5K in 2006 & 2007
Year end Filing deadline including extension or minimum funding deadline of 9/15 for calendar year plans 25% of all participants compensation EXCEPT salary deferral contributions Optional % can vary each year None Permitted Salary deferral contributions immediately vested, match may be vested over time Age: 21
Service: 1 year, 1K hours of service per year
Safe harbor 401(k) (Qualified Plan) Same as 401(k) Same as 401(k) Same as 401(k) Same as 401(k) Same as 401(k) Required matching or 3% non-elective contribution Covered   employee
No other   testing on   salary deferral
Permitted Deferrals and safe harbor contributions immediately vested, match may be vested over time Age: 21
Service: 1 year, 1K hours of service per year
Defined Benefit (Qualified Plan primarily employer funded) 100% of average compensation of 3 highest years, up to $160K N/A Year end including extensions Filing deadline including extension or minimum funding deadline of 9/15 for calendar year plans Minimum funding requirement determined by actuary % can vary year by year determined by actuary Covered   employee
Benefit   accruals
Top heavy
Generally not permitted 5 year cliff or graded over 7 years Age: 21
Service: 1 year, 1K hours of service per year

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This page was last reviewed and/or updated on Friday, July 03, 2015 05:21 PM

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