| COMPARISON OF RETIREMENT PLANS 2011 |
| Plan Type |
Maximum Limits on
Individual
Contribution or
Benefit |
Catch-up
Contribution |
Setup Deadline |
Contribution Deadline |
Maximum Limits
for Employer
Deductions |
Employer
Contributions |
Anti-discrimination
Testing
Requirements |
Loans |
Maximum Service
to Vest |
Maximum
Eligibility |
| SEP IRA |
Lesser of 25% of
compensation or
$49,000 |
Not applicable |
Business’s tax-filing
deadline, including
extensions |
Business’s tax-filing
deadline, including
extensions |
25% of each
participant’s
compensation |
Percentage can vary each year. |
None |
Not permitted |
Immediately
vested |
Age: No limits
Service: 3 out of 5 years
Salary: At least $550 annually |
| Profit-sharing |
Lesser of 100% of compensation of $49,000 |
Not applicable |
Business’s year-end |
Business’s tax-filing
deadline, including
extensions |
25% of all
participants’
compensation |
Percentage can
vary each year. |
• Covered
employees
• Allocation of
contribution
• Top-heavy |
Permitted |
3-year cliff vesting
or graded over 6 years |
Age: 21
Service: 1 year;
1,000 hours of
service per year;
2 years if
immediately vested |
Defined
Benefit |
Annual benefit cannot
exceed 100% of
average compensation
of three highest
consecutive years or
$195,000 benefit per year |
Not applicable |
Business’s year-end |
Earlier of business’s tax filing deadline, including
extensions, or minimum
funding deadline (Sept. 15 for calendar- year plans) |
Maximum funding
requirement
determined by actuary |
Amount
determined by
actuary each
year |
• Covered
employees
• Benefit
accruals
• Top-heavy |
Permitted but may affect
actuarial
computations |
5-year cliff vesting or graded over 7
years |
Age: 21
Service: 1 year;
1,000 hours of
service per year; 2 years if immediately
vested |
SIMPLE IRA
Special
provisions
apply for
401(k) form |
$11,500
Increased for inflation
once $500 increments
are reached |
$2,500
Increased for
inflation once $500
increments
are reached |
Should be
established early in
the year to
maximize salary
deferral
advantages. Plan
cannot have an
effective date later
than Oct. 1 for
current-year
contribution. |
Matching and non-elective
contributions must be made
by the business’s tax-filing
deadline, including
extensions.
Salary deferral contributions
must be deposited as soon
as possible, but no later
than 15 business days after
the end of the month they
were deferred. |
Allowable
contributions are
deductible |
Required
contribution
either (1) dollar-to-
dollar match
up to 3% or (2)
2% non-elective
contribution to
eligible persons. |
None |
Not permitted |
Immediately
vested |
Age: No limits
Service: 2 years
Salary: At least
$5,000 annually |
Safe Harbor
401(k) |
$16,500 or up to 100%
or compensation, if
less than annual limit.
Increased for inflation
once $500 increments
are reached. |
$5,500
Increased for
inflation once
$500
increments
are reached
Catch-up can
allow total
contributions
to exceed all
other limits. |
A new Safe Harbor
401(k) plan must
have a minimum 3-
month first year.
30 days before
beginning of plan
year to convert an
existing 401(k). |
Matching and profit-sharing
contributions must be made
by the business’s tax-filing
deadline, including
extensions.
Salary deferral contributions
must be deposited as soon
as possible, but no later
than 15 business days after
the end of the month they
were deferred. |
25% of all
participants’
compensation —
EXCEPT salary
deferral
contributions are
not included in
determining the limit. |
Required
contribution
either (1) dollarto-
dollar match
up to 3%, plus
$.50 per dollar
above 3% up to
5%, or (2) 3%
nonelective
contribution to
eligible persons. |
• Covered
employees
• No other
testing on salary
deferral portion
of plan
• Top-heavy,
required if
additional
contributions made |
Permitted |
Salary deferral
contributions AND
Safe Harbor
required match or
non-elective
contributions
immediately
vested; additional
employer
contribution may
vest over time. |
Age: 21
Service: 1 year;
1,000 hours of
service per year |
| 401(k) |
$16,500 or up to 100%
or compensation, if
less than annual limit.
Increased for inflation
once $500 increments
are reached. |
$5,500
Increased for inflation once $500
increments are reached Catch-up can allow total contributions to exceed all other limits. |
|
Matching and profit-sharing
contributions must be made
by the business’s tax-filing
deadline, including
extensions.
Salary deferral contributions
must be deposited as soon
as possible, but no later
than 15 business days after
the end of the month they
were deferred. |
25% of all
participants’
compensation —
EXCEPT salary
deferral
contributions are
not included in
determining the
limit. |
Optional:
percentage can
vary each year. |
• Covered
employees
• Average
deferrals
• Average
contributions
• Top-heavy |
Permitted |
Salary deferral
contributions
immediately
vested; employer
match may be
vested over time
— 3-year cliff
vesting or graded
vesting over 6
years. |
Age: 21
Service: 1 year;
1,000 hours of
service per year |
| All dollar limits apply to 2011. |
