| 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 |