Plans
Plan Type Objective Plan administration
Traditional 401(k) Maximum deferral ($17,000 + Yes
$5,500 for over age 50 for 2012).
Company match / profit sharing can
be subject to vesting. Eligibility to one
year wait + age 21. Loans are allowed.
Subject to non-discrimination tests.
Additional employer contributions allowed.
minimal testing. Maximum deferral
($17,000+ $5,500 for over age 50 for
2012). Must make either 3% company
contribution to all eligible; or 100% match
of participant deferral plus 50% match
of participant deferral up to the next 2%
of pay. All safe harbor contributions are
100% vested. Not subject to core non-
discrimination tests. Same eligibility
requirements as traditional 401(k).
Additional employer contributions allowed.
SIMPLE IRA Deferrals limited ($11,500 + $2,500 No
for over age 50 for 2012). Must make
either 2% company contribution to all
eligible participants, or 3% match to
only those participants who defer. Any
employee who earns at least $5,000 is
eligible. Participants are 100% vested
in all accounts. Loans are not allowed.
Additional contributions are not allowed.
25% penalty first 2 years withdrawals.
PROFIT SHARING Company contribution only, subject Yes
to vesting, up to 25% of eligible payroll.
Can set eligibility requirements to one
year wait + age 21. Loans are allowed.
SEP Company contribution only, up to No
25% of eligible payroll. Participants
are 100% vested in their accounts. Any
employee who has worked for 3 out of
the past 5 years and is age 21 is eligible.
Loans are not allowed.
Please note that above items are basic summaries. Other restrictions may apply.
