|
|
COMPARISON OF PLANS WITH EMPLOYEE DEFERRALS
|
|
SIMPLE
IRA
|
SIMPLE
401(k)
|
SAFE
HARBOR 401(k)
|
TRADITIONAL
401(k) WITH PROFIT SHARING
|
NEW
COMPARABILITY 401(k) WITH PROFIT SHARING
|
|
Legal
Minimum Standard for Eligibility
|
All
Employees earning at least $5,000 in any 2 prior
years
|
1
Year of Service and Age 21
|
1
Year of Service and Age 21
|
1
Year of Service and Age 21
|
1
Year of Service and Age 21
|
|
Maximum
# Employees
|
100
|
100
|
No
limit
|
No
limit
|
No
limit
|
|
2008 Maximum
Deferral/Catch-up |
$10,500/$2,500
|
$10,500/$2,500
|
$15,500/$5,000
|
$15,500/$5,000
|
$15,500/$5,000
|
|
Required
Employer Contributions
|
Either:
(1) Match-100% of deferrals up to 3% of pay or
(2) 2% of pay to all eligible
|
Same
as Simple IRA
|
Either:
(1) Match-100% of deferrals up to 3% of pay plus 50% of deferrals of next
2% of pay or
(2) 3% of pay to all eligible
|
None
|
None
|
|
Additional
Employer Contributions Permitted
|
No
|
No
|
Yes
|
Yes
|
Yes
|
|
Top-Heavy
Rules Apply
|
No
|
No
|
Yes
|
Yes
|
Yes
|
|
Vesting
of Employer Contributions
|
100%
|
100%
|
100%
for Required Contributions; Optional Contributions
Subject to Vesting Schedule
|
Vesting
Schedule
|
Vesting
Schedule
|
|
Investment
Restrictions
|
Only
IRA Accounts
|
None
|
None
|
None
|
None
|
|
Legal
Plan Documents
|
Model
IRS Forms
|
Prototype
|
Prototype
|
Prototype
|
Custom
Plan with IRS Submission
|
|
Highly
Compensated Employee Deferrals Subject to Discrimination
Tests
|
No
|
No
|
No
|
Yes
|
Yes
|
|
May
the Employer have another plan at same time
|
No
|
No
|
Yes
|
Yes
|
Yes
|
|
Annual
IRS Form 5500 Required
|
No
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Max
Possible Total Annual Contributions for $230,000
Compensation
|
$17,400/$19,900
|
$17,400/$19,900
|
$46,000/$51,000
|
$46,000/$51,000
|
$46,000/$51,000
|
|
Can
the Employer Contribute a different % of Pay for
Different Groups of Employees
|
No
|
No
|
No
|
No
|
Yes
|
|
|
|
|
Arizona
Qualified Plan Services, Inc.
4000 N. Central Avenue, Suite 1200
Phoenix, Arizona 85012
Voice: (602) 234-3199
Fax: (602) 234-3256
Toll Free:
(800) 859-AQPS
E-mail: aqps@aqps.com
Bruce
Gardner,
F.S.A., E.A., M.A.A.A
Katherine M. Manker, C.E.B.S.,
E.A., M.S.P.A.
Consulting Actuaries & Retirement Plan Administrators |
|
