|
Compliance Requirements &
Limits |
SEP |
SIMPLE IRA |
Qualified Retirement Plan |
|
Profit Sharing
(PS) |
PS w/401(k) |
Defined Benefit |
|
Employer Conditions |
None
|
100 Employee Limit |
None
|
None |
None
|
|
Plan Document |
IRS Model Plan (Form 5305-SEP) or
Individual Plan |
IRS Model Plan (Form
5305-SIMPLE) or Individual Plan |
Qualified Plan Document |
Qualified Plan Document |
Qualified Plan Document |
|
Plan must be established by |
Due date of employer tax return or
extension |
By October 1 of calendar yr exception for
new employer |
By end of
plan year |
By end of plan year; Oct.1 if Safe harbor;
exception for new employer |
By end of
plan year |
|
Exclusive Plan |
No |
Yes |
No |
No |
No |
|
Employees of Affiliated or
Related Employers |
Must include |
Must include |
May exclude by applying minimum coverage
rules |
May exclude by applying minimum coverage
rules |
May exclude
by applying minimum coverage rules |
|
Coverage Testing |
Not Applicable |
Not
Applicable |
Applicable |
Applicable |
Applicable |
|
Nondiscrimination Tests |
Not Applicable |
Not
Applicable |
Applicable |
Applicable |
Not Applicable |
|
Top heavy Rules |
Not Applicable |
Not
Applicable |
Applicable |
Applicable |
Applicable |
|
Individual Maximum Annual
Addition & Benefit Limits (IRC§415) |
For
2008, lesser of 100% of comp or $46,000 |
Participant limit plus employer
contribution |
For 2008, lesser of 100% of comp or $46,000
|
For 2008, lesser of 100% of comp or $46,000;
401(k) catch-up excluded |
For 2008, lesser of 100% of high 3-yr avg.
compensation or $185,000 |
|
Participant Contribution Limit |
N/A |
$10,500 plus $2,500 if age >50 |
N/A |
$15,500 plus
$5,000 if age >50 |
N/A |
|
Compensation Dollar Limit |
$230,000 |
$230,000 for Non-elective; None for Match |
$230,000 |
$230,000 |
$230,000 |
|
Employer Deduction Limit
(IRC§404) |
25% of aggregate employee compensation |
Participant limit plus 2% ER
Contribution; or 3% ER Match |
25% of aggregate employee compensation |
25% of aggregate
employee compensation; 401(k)
not considered |
Based on plan formula subject to
applicable limits |
|
Participant-Directed Investments |
Required |
Required |
Optional but
not required |
Optional but
not required |
Not Permitted |
|
Life Insurance as
a Plan Investment |
Not Permitted |
Not Permitted |
Permitted |
Permitted |
Permitted |
|
Accepts transfer from qualified plan, IRA, SEP,
SIMPLE, 403(b), 457(b) |
Yes; SIMPLE IRA
25% penalty if distributed before 2 yrs |
From another
SIMPLE IRA only |
Yes; SIMPLE IRA
25% penalty if distributed before 2 years |
Yes; SIMPLE IRA
25% penalty if distributed before 2 years |
Yes; SIMPLE IRA
25% penalty if distributed before 2 years |
