|
Benefit or Feature |
SEP |
SIMPLE IRA |
Qualified Retirement Plan |
|
Profit Sharing
(PS) |
PS w/401(k) |
Defined Benefit |
|
Maximum Participant
Eligibility
Conditions |
Any year earning $500 in 3 of prior 5
years
(2009) |
$5,000 in 2 prior; $5,000 expected in current year |
Age 21; 2 yrs of service (1000 hrs) |
Age 21; 1 yr of service (1000 hrs)
for 401(k) only |
Age 21; 2 yrs of service (1000 hrs) |
|
Maximum Elective
Employee Contri-bution (IRC
§402(g)) |
Not Applicable |
Lesser of
100% of compensation or $11,500 ('09) |
Not Applicable |
Lesser of 100% of compensation or
$16,500 (2009) |
Not Applicable |
|
Catch-up (≥age 50) |
None |
$2,500 (2009) |
None |
$5,500 (2009) |
None |
|
Employer Match |
Not Applicable |
Required
100% of 1st 3% (may reduce to 1% in 2
of 5 yrs) |
Not Applicable |
May be fixed or discretionary |
Not Applicable |
|
Employer Contribution |
Discretionary |
Required
2%
of Total Compensation |
Discretionary but may require Top-heavy minimum
contribution |
Discretionary but may require Top-heavy minimum
contribution |
Required contribution based on plan formula |
|
Employer Contribution Allocation or Benefit
Determination Methods |
Salary Proportionate; Integrated with S.S.
(not with IRS Model SEP) |
Salary
Proportionate |
Salary Proportionate; Integrated w/S.S.; class or age-based |
Salary Proportionate; Integrated w/S.S.; class or age-based |
Fixed Benefit;
Unit Benefit;
Class-based;
Cash Balance |
|
"Safe
Harbor" 401(k) Auto-matically Passes ADP/ACP Test |
Not Applicable |
Not Applicable |
Not Applicable |
Required
100% vested 3% employer cont. or match
equal to 100% of 1st 3%, 50% of next 2% |
Not Applicable |
|
Maximum Vesting for Employer Contributions |
100% Immediate |
100% Immediate |
2/20 graded or
3 year
cliff |
Employer match:
2/20 graded or
3 year cliff |
2/20 graded
or 3-year
cliff;
3-year cliff only for Cash Balance |
|
Withdrawals |
Penalty free after age 59½ or Death |
Penalty free after
age 59½ or Death |
Retirement, Death or Disability, In-Service, Hardship
(may be subject to 10% additional tax) |
Retirement, Death or Disability, In-Service, Hardship
(may be subject to
10% additional tax) |
Retirement, Death or Disability, In-Service, Hardship
(may be subject to
10% additional tax) |
|
Participant Loans |
Not Permitted |
Not Permitted |
Permitted within Limits |
Permitted within Limits |
Permitted within Limits |
|
Last Day of Plan Year Employment Condition |
Not Permitted |
Not Permitted |
Permitted
subject to minimum coverage |
Permitted
subject to minimum coverage |
Permitted
subject to minimum coverage |
|
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 |
