Easy to set up and maintain. |
Easy to set up and maintain. |
Salary reduction plan with
little administrative paperwork. |
Permits employee to contribute more than in other options without annual discrimination testing. |
Provides high level of participation and permits high level of salary deferrals by employees. Also safe harbor relief for default investments. |
Permits employee to contribute more than in other options. |
Permits employer to make large contributions for employees. |
Provides a fixed, pre-established benefit for employees. |
Any business with one or more employees. |
Any business that does not currently maintain any other retirement plan. |
Any business with 100 or fewer employees that does not currently maintain any other retirement plan. |
Any business with one or more employees. |
Any business with one or more employees. |
Any business with one or more employees. |
Any business with one or more employees. |
Any business with one or more employees. |
Set up arrangements for employees to make payroll deduction contributions.
Transmit contributions for employees to funding vehicle.
No employer tax filing required.
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May set up plan by completing IRS Form 5305-SEP.
No employer tax filing required.
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May set up by completing
IRS Form 5304-SIMPLE or 5305-SIMPLE. No employer tax filing
required. Bank or financial institution does most of the paperwork.
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There is no model form to establish a plan. Advice from a
financial institution or employee benefit advisor may be necessary.A minimum amount of employer contributions is required. Annual
filing of IRS Form 5500 is required.
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There is no model form to establish a plan. Advice from a financial
institu-tion or employee benefit advisor may be necessary. Annual filing of IRS Form 5500
is required.
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There is no model form to establish a plan. Advice from a
financial institution or employee benefit advisor may be necessary.
Annual filing of IRS Form 5500
required. Also requires annual non-discrimination testing to ensure plan
does not discriminate in favor of highly compensated employees. |
There is no model form to establish a plan. Advice from a financial institution
or employee benefit advisor would be necessary.
Annual filing of IRS Form 5500 is required.
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There is no model form to establish a plan. Advice from a financial institution or employee
benefit advisor would be necessary. Annual filing of IRS Form 5500 is required.
Actuary must determine funding obligations.
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Employee contributions remitted through payroll deduction. |
Employer contributions only. |
Employee salary reduction contributions and/or employer contributions. |
Employee salary reduction contributions and employer contributions. |
Employee salary reduction contributions and employer contributions. |
Employee salary reduction contributions and/or employer contributions. |
Employer contribution level can be determined year to year. |
Primarily employer; may require or permit employee contributions. |
Up to $5,000 for 2009. Additional contributions can be made by participants age 50 or over. |
Up to 25% of compensation1 or a maximum of $49,000 in 2009.
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Employee: Up to $11,500 in 2009. Additional contributions can be made by
participants age 50 or over. Employer: Either match employee contributions $
for $ up to 3% of compensation (can be reduced to as low as 1% in any 2 out of 5 yrs.)
or contribute 2% of each eligible employee's compensation, up to $4,5002.
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Employee: Up to $16,500 in 2009. Additional contributions can
be made by participants age 50 or over. Employer / Employee Combined: Contributions per participant up
to the lesser of 100% of compensation1 or $49,000 in 2009. Employer
can deduct amounts that do not exceed 25% of aggregate compensation for all participants.
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Employee: Up to $16,500 in 2009. Additional contributions can
be made by participants age 50 or over. Employer / Employee Combined: Contributions per participant up
to the lesser of 100% of compensation1 or $49,000 in 2009. Employer
can deduct amounts that do not exceed 25% of aggregate compensation for all participants.
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Employee: Up to $16,500 in 2009. Additional contributions can
be made by participants age 50 or over. Employer / Employee Combined: Contributions per participant up
to the lesser of 100% of compensation1 or $49,000 in 2009. Employer
can deduct amounts that do not exceed 25% of aggregate compensation for all participants.
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Contributions per participant up to the lesser of 100% of compensation1
or $49,000 for 2009. Employer can deduct amounts that do not exceed 25% of aggregate
compensation for all participants.
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Per plan terms, employer may permit or require employee contribution.
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Should be made available to all employees. |
Must be offered to all employees who are at least 21 years of age, employed
by the business for 3 of last 5 years and earned at least $550 in a year for 2009.
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Must be offered to all employees who have earned at least $5,000 in
previous 2 years, and are reasonably expected to earn at least $5,000 in
the current year.
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Generally, must be offered to all employees at least 21 years of age who
worked at least 1,000 hours in previous year. |
Generally, must include all employees who have not already opted out and
those who are at least 21 years of age who worked at least 1,000 hours
in previous year. |
Generally, must be offered to all employees at least 21 years of age who
worked at least 1,000 hours in previous year. |
Generally, must be offered to all employees at least 21 years of age who
worked at least 1,000 hours in previous year. | Must
be offered to all employees at least 21 years of age who worked at least 1,000 hours in
previous year. |
Withdrawals at anytime ; subject to current federal income taxes
and a possible 10% penalty if the participant is under age 59 1/2. |
Withdrawals at anytime; subject to current federal income taxes
and a possible 10% penalty if the participant is under age 59 1/2. |
Withdrawals at any time subject to current federal income taxes.
If employee is under age 59 1/2, may be subject to a 25% penalty if
taken within the first 2 years of participation and a possible 10%
penalty if taken afterwards. |
Cannot take withdrawals until a specified event, such as reaching
59 1/2, death, separation from service or other event as identified in
plan. May permit loans and hardship withdrawals. Withdrawals may be
subject to a possible 10% penalty if participant is under age 59 1/2. |
Cannot take withdrawals until a specified event, such as reaching
59 1/2, death, separation from service or other event as identified in
plan. May permit loans and hardship withdrawals. Withdrawals may be
subject to a possible 10% penalty if participant is under age 59 1/2. |
Cannot take withdrawals until a specified event, such as reaching
59 1/2, death, separation from service or other event as identified in
plan. May permit loans and hardship withdrawals. Withdrawals may be
subject to a possible 10% penalty if participant is under age 59 1/2. |
May permit loans and hardship withdrawals. Hardship withdrawals
may be subject to a possible 10% penalty if participant is under age 59
1/2.
Payment of benefits generally at retirement.
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Payment
of benefits generally at retirement, may offer participant loans. |
Immediate 100% |
Immediate 100% |
Employee salary reduction contributions and employer contributions vested 100% immediately. |
Employee salary reduction contributions and most employer
contributions vest immediately. Some employer contributions may vest
over time according to plan terms. |
Employee salary reduction contributions vest immediately.
Employer contributions may vest over time according to plan terms. |
Employee salary reduction contributions vest immediately. Employer contributions
may vest over time according to plan terms. |
May vest over time according to plan terms. | May
vest over time according to plan terms. |
Employee can decide how much to contribute at any time. |
Employer can decide whether or not to make contributions year to
year. |
Employee can decide how much to contribute. Employer must make
matching contributions or contribute 2% of each employee's salary up to
the set maximum. |
Employees can decide how much to contribute pursuant to a salary
reduction agreement. The employer must make either specified matching
contributions or a 3% contribution to all participants. |
Employees, unless they opt otherwise, must make salary reduction contributions
specified by the employer. The employer can make additional matching
contributions as set by plan terms.
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Employees can decide how much to contribute pursuant to a salary
reduction agreement. The employer can make additional contribution,
including matching contributions as set by plan terms. |
Employer makes contribution as set by plan terms. |
Employer
makes contributions as set by plan terms. |