Eligibility

Eligibility

Profit Sharing Plan

Money Purchase Pension Plan

401(k) Deferral Plan

Target Benefit Plan

Defined Benefit Plan

SIMPLE 401(k)

Age Requirements

Plans may exclude employees under age 21.

Plans may exclude employees under age 21.

Plans may exclude employees under age 21.

Plans may exclude employees under age 21.

Plans may exclude employees under age 21.

The 401(k) rules apply, thus an employer may exclude employees under age 21.

Service Requirement

Plans may require employees to complete up to 2 years of service before being eligible to enter the plan. A “year of service” may be defined as up to 1,000 hours over a 12-month period. NOTE: the “years of service” requirement affects how rapidly a participant’s account becomes vested.

Plans may require employees to complete up to 2 years of service before being eligible to enter the plan. A “year of service” may be defined as up to 1,000 hours over a 12-month period. NOTE: the “years of service” requirement affects how rapidly a participant’s account becomes vested.

Plans may require employees to complete up to 1 year of service to make deferrals. A “year of service” may be defined as up to 1,000 hours over a 12-month period.

Plans may require employees to complete up to 2 years of service before being eligible to enter the plan. A “year of service” may be defined as up to 1,000 hours over a 12-month period. NOTE: the “years of service” requirement affects how rapidly a participant’s account becomes vested.

Plans may require employees to complete up to 2 years of service before being eligible to enter the plan. A “year of service” may be defined as up to 1,000 hours over a 12-month period. NOTE: the “years of service” requirement affects how rapidly a participant’s account becomes vested.

The 401(k) rules apply, and an employer may require 1 year of service, which may be defined as up to 1,000 hours over a 12-month period.

Excludable Employees

Certain employees covered by a collective bargaining agreement and certain nonresident aliens may be excluded. Some plans may exclude certain classes of employees (e.g., hourly employees).

Certain employees covered by a collective bargaining agreement and certain nonresident aliens may be excluded. Some plans may exclude certain classes of employees (e.g., hourly employees).

Certain employees covered by a collective bargaining agreement and certain nonresident aliens may be excluded. Some plans may exclude certain classes of employees (e.g., hourly employees).

Certain employees covered by a collective bargaining agreement and certain nonresident aliens may be excluded. Some plans may exclude certain classes of employees (e.g., hourly employees).

Certain employees covered by a collective bargaining agreement and certain nonresident aliens may be excluded. Some plans may exclude certain classes of employees (e.g., hourly employees).

Certain employees covered by a collective bargaining agreement and certain nonresident aliens may be excluded. Some plans may exclude certain classes of employees (e.g., hourly employees).


Plan Entry


Plan Entry

Profit Sharing Plan

Money Purchase Pension Plan

401(k) Deferral Plan

Target Benefit Plan

Defined Benefit Plan

SIMPLE 401(k)

Timing

Plan entry dates determine when an employee enters the plan. For example, plan entry dates ,may be set at January 1 and July 1.

Plan entry dates determine when an employee enters the plan. For example, plan entry dates ,may be set at January 1 and July 1.

Plan entry dates determine when an employee enters the plan. For example, plan entry dates ,may be set at January 1 and July 1.

Plan entry dates determine when an employee enters the plan. For example, plan entry dates ,may be set at January 1 and July 1.

Plan entry dates determine when an employee enters the plan. For example, plan entry dates ,may be set at January 1 and July 1.

Plan entry dates determine when an employee enters the plan. For example, plan entry dates ,may be set at January 1 and July 1.

Affects Contribution

The plan may be required to count only compensation earned from the date an employee enters the plan.

The plan may be required to count only compensation earned from the date an employee enters the plan.

An employee may make deferrals only prospectively. Thus, only compensation earned from the plan entry date may be deferred.

The plan will define the compensation considered for contribution purposes.

The plan will define the compensation considered for contribution purposes.

An employee may make deferrals only prospectively. Thus, only compensation earned from the plan entry date may be deferred. In addition, if the employer chooses to make a 2% non-elective contribution, it is limited to employees who are eligible to participate in the plan.


Testing


Testing

Profit Sharing Plan

Money Purchase Pension Plan

401(k) Deferral Plan

Target Benefit Plan

Defined Benefit Plan

SIMPLE 401(k)

Minimum Coverage Tests

Special coverage tests are required under IRC Sec. 410(b). these tests ensure that the employer does not discriminate.

Special coverage tests are required under IRC Sec. 410(b). these tests ensure that the employer does not discriminate.

Special coverage tests are required under IRC Sec. 410(b). these tests ensure that the employer does not discriminate. All employees eligible to make deferrals are considered even though they may not actually defer.

Special coverage tests are required under IRC Sec. 410(b). these tests ensure that the employer does not discriminate.

Special coverage tests are required under IRC Sec. 410(b). these tests ensure that the employer does not discriminate.

Special coverage tests are required under IRC Sec. 410(b).

Non-discrimination Tests

Special non-discrimination tests apply under IRC Sec. 401 (a)(4). These tests ensure an employer does not discriminate with regard to benefit formulas, options, and features.

Special non-discrimination tests apply under IRC Sec. 401 (a)(4). These tests ensure an employer does not discriminate with regard to benefit formulas, options, and features.

Special non-discrimination tests apply under IRC Sec. 401 (a)(4). These tests ensure an employer does not discriminate with regard to benefit formulas, options, and features. Employee deferrals are subject to a special non-discrimination (ADP) test under IRC Sec. 401(k). Employee non-deductible and employer matching contributions are subject to a special non-discrimination (ACP) test under IRC Sec. 401(m). ADP and ACP testing safe harbors may make these tests unnecessary.

Special non-discrimination tests apply under IRC Sec. 401 (a)(4). These tests ensure an employer does not discriminate with regard to benefit formulas, options, and features.

Special non-discrimination tests apply under IRC Sec. 401 (a)(4). These tests ensure an employer does not discriminate with regard to benefit formulas, options, and features.

Special non-discrimination tests under IRC Sec. 401(a)(4) do not apply. The 401(k) plan ADP and ACP tests are deemed satisfied if employee deferrals are limited to $11,500 for 2009 and 2010 (plus catch-up contributions), the employer makes the required matching or nonelective contribution, and no other contributions are made to the plan.


Contributions


Contributions

Profit Sharing Plan

Money Purchase Pension Plan

401(k) Deferral Plan

Target Benefit Plan

Defined Benefit Plan

SIMPLE 401(k)

Employer Contribution Allocation Formula

Generally, the contribution is prorated based on each participant’s share of total compensation.

Generally, the contribution is prorated based on each participant’s share of total compensation.

Matching contributions generally are a percentage of a participant’s deferred compensation.

The contribution is based on each participant’s compensation and specified projected retirement benefit.

The contribution is based on each participant’s compensation and specified projected retirement benefit

Matching contributions generally are a percentage of a participant’s deferred compensation or a percentage of each eligible employee’s compensation

Includible Compensation

For plan years beginning on or after January 1, 2002, compensation is the first $200,000 (indexed to $245,000 for 2009 and 2010) of each participant’s compensation.

For plan years beginning on or after January 1, 2002, compensation is the first $200,000 (indexed to $245,000 for 2009 and 2010) of each participant’s compensation.

For plan years beginning on or after January 1, 2002, compensation is the first $200,000 (indexed to $245,000 for 2009 and 2010) of each participant’s compensation.

For plan years beginning on or after January 1, 2002, compensation is the first $200,000 (indexed to $245,000 for 2009 and 2010) of each participant’s compensation.

For plan years beginning on or after January 1, 2002, compensation is the first $200,000 (indexed to $245,000 for 2009 and 2010) of each participant’s compensation.

For plan years beginning on or after January 1, 2002, compensation is the first $200,000 (indexed to $245,000 for 2009 and 2010) of each participant’s compensation.

Last Day Requirement

Some plans may require a participant to be employed on the last day of the plan year to receive a contribution.

Some plans may require a participant to be employed on the last day of the plan year to receive a contribution.

Some plans may require a participant to be employed on the last day of the plan year to receive a contribution.

Some plans may require a participant to be employed on the last day of the plan year to receive a contribution.

Some plans may require a participant to be employed on the last day of the plan year to receive a contribution.

N/A

Contribution Limit

Contributions (employer and employee) plus any forfeitures allocated to a participant’s account for the plan year may not exceed the lesser of 100% of compensation or $40,000 (indexed to $49,000 for 2009 and 2010).

Employer contributions plus any forfeitures allocated to a participant’s account for the plan year may not exceed the lesser of 100% of compensation or $40,000 (indexed to $49,000 for 2009 and 2010).

Elective deferrals may not exceed the annual indexed figure ($16,500 for 2009 and 2010). Catch-up contributions may apply. All contributions (employer and employee), together with any forfeitures allocated to a participant’s account for the plan year may not exceed the lesser of 100% of compensation or $40,000 (indexed to $49,000 for 2009 and 2010).

Contributions (employer and employee) plus any forfeitures allocated to a participant’s account for the plan year may not exceed the lesser of 100% of compensation or $40,000 (indexed to $49,000 for 2009 and 2010).

Amount required to fund projected benefits must use reasonable assumptions.

Elective deferrals may not exceed $11,500 for 2009 and 2010. Employer match generally must be 3% of compensation, or a nonelective contribution of 2% of compensation. Catch-up contributions may apply.

Deduction Limit

The employer’s current year deduction is limited to 25% of compensation paid to all eligible participants.

The employer’s current year deduction is limited to 25% of compensation paid to all eligible participants.

The employer’s current year deduction is limited to 25% of compensation paid to all eligible participants.

The employer’s current year deduction is limited to 25% of compensation paid to all eligible participants.

The employer’s current year deduction is limited to 100% of the unfunded current liability.

The deduction limit is the same as the contribution limit.

Vesting

Employers may require participants to work several years before they have a nonforfeitable right to 100% of their benefit. This is called a vesting schedule.

Employers may require participants to work several years before they have a nonforfeitable right to 100% of their benefit. This is called a vesting schedule.

Participants are always 100% vested in their 401(k) elective deferrals.

Employers may require participants to work several years before they have a nonforfeitable right to 100% of their benefit. This is called a vesting schedule.

Employers may require participants to work several years before they have a nonforfeitable right to 100% of their benefit. This is called a vesting schedule.

All Contributions are immediately 100 percent vested.

Salary Deferral Feature

N/A

N/A

Contributions are limited to $16,500 for 2009 and 2010. Catch-up contributions may apply.

N//A

N/A

Contributions are limited to the lesser of $11,500 for 2009 and 2010 or the amount of earned income. Catch-up contributions may apply

Social Security Integration

Optional

Optional

Optional if plan allows for employer profit sharing contributions.

Optional

Optional

N/A

Employer Contribution

Optional. The employer may decide each year whether to make a contribution and, if so, the amount.

The employer must contribute a specified percentage of participants’ compensation each year

An employer profit sharing contribution generally is discretionary, while a matching contribution may be discretionary or fixed, depending on the terms of the plan.

The employer must contribute a specified percentage of participants’ compensation each plan year.

The employer must make a contribution each plan year in a specific amount based on the participants’ compensation and other factors.

Mandatory match of deferrals up to 3% of compensation, or non-elective contribution of 2% of compensation.

Deadline

Contributions must be made by the employer’s tax return due date, plus extensions.

Contributions must be made by the employer’s tax return due date, plus extensions.

Employer Contributions must be made by the employer’s tax return due date, plus extensions. Employee deferrals in 401(k) plans typically are contributed each pay period, and must be deposited to the plan as soon as administratively feasible, but no later than the 15th day of the month following the month of deferral. For small plans (plans with fewer than 100 participants), employee deferrals are deemed to be deposited as soon as administratively feasible if deposited within seven business days.

Contributions must be made by the employer’s tax return due date, plus extensions.

Generally, quarterly contributions are required.

Employer Contributions must be made by the employer’s tax return due date, plus extensions. Employee deferrals in 401(k) plans typically are contributed each pay period, and must be deposited to the plan as soon as administratively feasible, but no later than the 15th day of the month following the month of deferral. For small plans (plans with fewer than 100 participants), employee deferrals are deemed to be deposited as soon as administratively feasible if deposited within seven business days.


Distributions


Distributions

Profit Sharing Plan

Money Purchase Pension Plan

401(k) Deferral Plan

Target Benefit Plan

Defined Benefit Plan

SIMPLE 401(k)

Required Minimum Distribution

Distributions must begin by the later of April 1 of the year following the 70 ½ years or April 1 of the year of retirement. The delay of RMDs until retirement is not available to 5% owners.

Distributions must begin by the later of April 1 of the year following the 70 ½ years or April 1 of the year of retirement. The delay of RMDs until retirement is not available to 5% owners.

Distributions must begin by the later of April 1 of the year following the 70 ½ years or April 1 of the year of retirement. The delay of RMDs until retirement is not available to 5% owners.

Distributions must begin by the later of April 1 of the year following the 70 ½ years or April 1 of the year of retirement. The delay of RMDs until retirement is not available to 5% owners.

Distributions must begin by the later of April 1 of the year following the 70 ½ years or April 1 of the year of retirement. The delay of RMDs until retirement is not available to 5% owners.

Distributions must begin by the later of April 1 of the year following the 70 ½ years or April 1 of the year of retirement. The delay of RMDs until retirement is not available to 5% owners.

Before Age 59 ½

Distributions taken before attainment of age 59 ½ are penalized 10%, unless an exception applies.

Distributions taken before attainment of age 59 ½ are penalized 10%, unless an exception applies.

Distributions taken before attainment of age 59 ½ are penalized 10%, unless an exception applies.

Distributions taken before attainment of age 59 ½ are penalized 10%, unless an exception applies.

Distributions taken before attainment of age 59 ½ are penalized 10%, unless an exception applies.

Distributions taken before attainment of age 59 ½ are penalized 10%, unless an exception applies.

Income Averaging

10-year averaging available for lump sum distributions to eligible employees.

10-year averaging available for lump sum distributions to eligible employees.

10-year averaging available for lump sum distributions to eligible employees.

10-year averaging available for lump sum distributions to eligible employees.

10-year averaging available for lump sum distributions to eligible employees.

10-year averaging available for lump sum distributions to eligible employees.

Loans

Permitted if allowed under the terms of the plan.

Permitted if allowed under the terms of the plan.

Permitted if allowed under the terms of the plan.

Permitted if allowed under the terms of the plan.

Permitted if allowed under the terms of the plan.

Permitted if allowed under the terms of the plan.

In-Service Withdrawals

Permitted at the employer’s option.

Not permitted.

Permitted at the employer’s option.

Not permitted.

Generally not permitted.

Permitted at the employer’s option.

Rollovers and Transfers

Participants may roll over any eligible rollover distribution to an IRA or to an eligible employer-sponsored plan. Employers generally are not required to report transfers of plan assets between defined contribution plans.

Participants may roll over any eligible rollover distribution to an IRA or to an eligible employer-sponsored plan. Employers generally are not required to report transfers of plan assets between defined contribution plans unless the plan has unpaid balance on a minimum funding waiver under IRC Sec. 412(d).

Participants may roll over any eligible rollover distribution to an IRA or to an eligible employer-sponsored plan. Employers generally are not required to report transfers of plan assets between defined contribution plan.

Participants may roll over any eligible rollover distribution to an IRA or to an eligible employer-sponsored plan. Employers generally are not required to report transfers of plan assets between defined contribution plans unless the plan has unpaid balance on a minimum funding waiver under IRC Sec. 412(d).

Participants may roll over any eligible rollover distribution to an IRA or to an eligible employer-sponsored plan.

Participants may roll over any eligible rollover distribution to an IRA or to an eligible employer-sponsored plan. Employers generally are not required to report transfers of plan assets between defined contribution plans.

Benefit Availability

Participants generally can take distributions only if certain events occur, such as retirement, separation from service, etc.

Participants generally can take distributions only if certain events occur, such as retirement, separation from service, etc.

Participants generally can take distributions only if certain events occur, such as retirement, separation from service, etc. Participants may have access to 401(k) elective deferral contributions if hardship distributions are permitted under the plan. Distributions are subject to any applicable penalties (e.g. 10% early distribution penalty).

Participants generally can take distributions only if certain events occur, such as retirement, separation from service, etc.

Participants generally can take distributions only if certain events occur, such as retirement, separation from service, etc.

Participants generally can take distributions only if certain events occur, such as retirement, separation from service, etc. Participants may have access to 401(k) elective deferral contributions if hardship distributions are permitted under the plan. Distributions are subject to any applicable penalties (e.g. 10% early distribution penalty).


Plan Administration


Plan Administration

Profit Sharing Plan

Money Purchase Pension Plan

401(k) Deferral Plan

Target Benefit Plan

Defined Benefit Plan

SIMPLE 401(k)

Plan Trustee, Custodian, or Issuer

The plan sponsor may act as the trustee or custodian of the plan. The employer or a named individual or entity also may fill this role.

The plan sponsor may act as the trustee or custodian of the plan. The employer or a named individual or entity also may fill this role.

The plan sponsor may act as the trustee or custodian of the plan. The employer or a named individual or entity also may fill this role.

The plan sponsor may act as the trustee or custodian of the plan. The employer or a named individual or entity also may fill this role.

The plan sponsor may act as the trustee or custodian of the plan. The employer or a named individual or entity also may fill this role.

The plan sponsor may act as the trustee or custodian of the plan. The employer or a named individual or entity also may fill this role.

Plan Year

An employer can maintain the plan on a calendar or noncalender-year basis.

An employer can maintain the plan on a calendar or noncalender-year basis.

An employer can maintain the plan on a calendar or noncalender-year basis.

An employer can maintain the plan on a calendar or noncalender-year basis.

An employer can maintain the plan on a calendar or noncalender-year basis.

An employer can maintain the plan on a calendar or noncalender-year basis.

Government Reporting

An employer generally must file a Form 5500 series report annually with the DOL.

An employer must report distributions on IRS Form 1099-R. when requested, employers must file summary plan descriptions with the DOL.

An employer generally must file a Form 5500 series report annually with the DOL.

An employer must report distributions on IRS Form 1099-R. when requested, employers must file summary plan descriptions with the DOL.

An employer generally must file a Form 5500 series report annually with the DOL.

An employer must report distributions on IRS Form 1099-R. when requested, employers must file summary plan descriptions with the DOL.

An employer generally must file a Form 5500 series report annually with the DOL.

An employer must report distributions on IRS Form 1099-R. when requested, employers must file summary plan descriptions with the DOL.

An employer generally must file a Form 5500 series report annually with the DOL.

An employer must report distributions on IRS Form 1099-R. when requested, employers must file summary plan descriptions with the DOL.

An employer generally must file a Form 5500 series report annually with the DOL.

An employer must report distributions on IRS Form 1099-R. when requested, employers must file summary plan descriptions with the DOL.

Plan Establishment

A plan must be set up by the end of the employer’s tax year. The employer may wait until the tax filing due date, plus extensions, to make contributions.

A plan must be set up by the end of the employer’s tax year. The employer may wait until the tax filing due date, plus extensions, to make contributions.

A plan must be set up by the end of the employer’s tax year. All employee deferrals must be contributed prospectively and before the end of the employer’s tax year.

A plan must be set up by the end of the employer’s tax year. The employer may wait until the tax filing due date, plus extensions, to make contributions.

A plan must be set up by the end of the employer’s tax year. The employer may wait until the tax filing due date, plus extensions, to make contributions.

A plan must be set up by the end of the employer’s tax year. All employee deferrals must be contributed prospectively and before the end of the employer’s tax year.

Plan Expense

Plan administration generally requires some expense because the government requires special reporting for the plan.

Plan administration generally requires some expense because the government requires special reporting for the plan.

Plan administration generally requires some expense because the government requires special reporting for the plan.

Plan administration generally requires some expense because the government requires special reporting for the plan.

Defined benefit plans generally are the most expensive type of retirement plan to maintain because of the need to retain actuaries and other professionals.

Plan administration generally requires some expense because the government requires special reporting for the plan.