401(k) Plan
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Who can sponsor this plan?
Any non-governmental employer
Contributions
- Employee Deferrals
- Employee Roth
- Employer optional
Maximum Annual Contributions
- Employee: $16,500
- Employee & Employer combined: $49,000 not to exceed 100% of pay
- Total employer contributions cannot exceed 25% of eligible compensation
Catch-up Contributions
$5,500 Employee Contribution
Employer Contribution Vesting
Can be subject up to a 6-year graded or 3-year cliff schedule
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Withdrawals
- Generally at termination of employment, retirement, death, disability
- Hardship and In-Service withdrawals optional
- 10% penalty for withdrawals prior to age 59½
Loans
Permitted
Rollovers
- To/From any qualified retirement plan
- To/From traditional IRA
Annual Compliance Requirements
- Non-discrimination testing
- IRS Form 5500
- Annual participant disclosure(s) (SAR, auto-enrollment)
- CPA audit for plan of 100+ participants
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403(b) Plan
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Who can sponsor this plan?
- 501(c)(3) non profits
- Public education employers
- Gov't related hospitals
- Churches
Contributions
- Employee Deferrals
- Employee Roth
- Employer optional
Maximum Annual Contributions
- Employee: $16,500
- Employee & Employer combined: $49,000 not to exceed 100% of pay
- Total employer contributions cannot exceed 25% of eligible compensation
Catch-up Contributions
- $5,500 Employee Contribution
- Special catch-up for certain employers
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Employer Contribution Vesting
Can be subject up to a 6-year graded or 3-year cliff schedule
Withdrawals
- Generally at termination of employment, retirement, death, disability
- Hardship and In-Service withdrawals optional
- 10% penalty for withdrawals prior to age 59½
Loans
Permitted
Rollovers
- To/From any qualified retirement plan
- To/From traditional IRA
Annual Compliance Requirements
- Non-discrimination testing
- IRS Form 5500
- Annual participant disclosure(s) (SAR, auto-enrollment)
- CPA audit for plan of 100+ participants
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401(a) Profit Sharing Plan
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Who can sponsor this plan?
Any non-governmental employer
Contributions
Employer contributions
Maximum Annual Contributions
- $49,000 not to exceed 100% of pay
- Total employer contributions cannot exceed 25% of eligible compensation
Catch-up Contributions
Not applicable
Employer Contribution Vesting
Usually 100% vested
Withdrawals
- Generally at termination of employment, retirement, death, disability
- Hardship and In-Service withdrawals optional
- 10% penalty for withdrawals prior to age 59½
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Loans
Permitted
Rollovers
- To/From any qualified retirement plan
- To/From traditional IRA
Annual Compliance Requirements
- Non-discrimination testing
- IRS Form 5500
- Annual participant disclosure(s) (SAR, auto-enrollment)
- CPA audit for plan of 100+ participants
Comments
Usually used by gov't contractors to hold SCA/Davis Bacon contributions to avoid top-heavy complications in their 401(k) plan
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457(b) Governmental Plan
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Who can sponsor this plan?
State and local governments
Contributions
- Employee Deferrals
- Employee Roth
- Employer optional
Maximum Annual Contributions
- Employee: $16,500
- Employee & Employer combined: $16,500
Catch-up Contributions
- $5,500 Employee Contribution
- Special catch-up near retirement
Employer Contribution Vesting
Can be subject up to a 6-year graded or 3-year cliff schedule
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Withdrawals
- Generally at termination of employment, retirement, death, disability
- Hardship and In-Service withdrawals optional
- No 10% penalty
Loans
Permitted
Rollovers
- To/From any qualified retirement plan
- To/From traditional IRA
- 10% penalty applies to withdrawals of non-gov't rollovers
Annual Compliance Requirements
Annual participant disclosure(s) (auto-enrollment)
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Defined Benefit Plan
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Who can sponsor this plan?
Any employer
Contributions
Employer Contributions
Maximum Annual Contributions
As actuarially determined
Catch-up Contributions
N/A
Employer Contribution Vesting
Can be subject up to a 6-year graded or 3-year cliff schedule
Withdrawals
- Generally at termination of employment, retirement, death, disability
- Hardship and In-Service withdrawals optional
- 10% penalty for withdrawals prior to age 59½
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Loans
Permitted
Rollovers
- To/From any qualified retirement plan
- To/From traditional IRA
Annual Compliance Requirements
- Non-discrimination testing
- IRS Form 5500
- Annual participant disclosure(s)
- CPA audit for plan of 100+ participants
- PGBC filing may be required
Comments
Contributions are required
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Cash Balance Plan
View more on cash balance plans here
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Who can sponsor this plan?
Any employer
Contributions
Employer Contributions
Maximum Annual Contributions
As actuarially determined
Catch-up Contributions
N/A
Employer Contribution Vesting
Can be subject up to a 3-year cliff schedule
Withdrawals
- Generally at termination of employment, retirement, death, disability
- Hardship and In-Service withdrawals optional
- 10% penalty for withdrawals prior to age 59½
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Loans
Permitted
Rollovers
- To/From any qualified retirement plan
- To/From traditional IRA
Annual Compliance Requirements
- Non-discrimination testing
- IRS Form 5500
- Annual participant disclosure(s)
- CPA audit for plan of 100+ participants
- PGBC filing may be required
Comments
- Normally used in conjunction with profit sharing contributions
- Typically only owners and key executives receive contributions
- Contributions are required
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457(b) Non-Profit Plan
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Who can sponsor this plan?
Any tax-exempt employer
Contributions
- Employee Deferrals
- Employer optional
Maximum Annual Contributions
- Employee: $16,500
- Employee & Employer combined: $16,500
Catch-up Contributions
Special catch-up near retirement
Employer Contribution Vesting
All contributions are subject to creditors
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Withdrawals
- Generally at termination of employment, retirement, death, disability
- Unforeseen emergency withdrawals optional
Loans
No
Rollovers
Only to another tax-exempt employer 457(b) plan
Annual Compliance Requirements
N/A
Comments
Only select management or highly compensated employees are eligible
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Money Purchase Plan
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Who can sponsor this plan?
Any employer
Contributions
Employer Contributions
Maximum Annual Contributions
- $49,000 not to exceed 100% of pay
- Total employer contributions cannot exceed 25% of eligible compensation
Catch-up Contributions
N/A
Employer Contribution Vesting
Can be subject up to a 6-year graded or 3-year cliff schedule
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Withdrawals
- Generally at termination of employment, retirement, death, disability
- In-Service withdrawals optional
- 10% penalty for withdrawals prior to age 59½
Loans
Permitted
Rollovers
- To/From any qualified retirement plan
- To/From traditional IRA
Annual Compliance Requirements
- Non-discrimination testing
- IRS Form 5500
- Annual participant disclosure(s)
- CPA audit for plan of 100+ participants
Comments
- Most money purchase plans were phased out in the early 2000's due to elimination of combined contribution limits
- Contributions are required
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SIMPLE 401(k) Plan
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Who can sponsor this plan?
Any for-profit non-governmental employer
Contributions
- Employee Deferrals
- Employee Roth
- Employer optional
Maximum Annual Contributions
- Employee: $11,500
- Employer: $4,800
Catch-up Contributions
$2,500 Employee Contribution
Employer Contribution Vesting
100% vested
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Withdrawals
- Generally at termination of employment, retirement, death, disability
- Hardship and In-Service withdrawals optional
- 10% penalty for withdrawals prior to age 59½
Loans
Permitted
Rollovers
- To/From any qualified retirement plan
- To/From traditional IRA
Annual Compliance Requirements
- IRS Form 5500
- Annual participant disclosure(s) (SAR, auto-enrollment)
Comments
- Employer contributions are required
- Only employers with under 100 employees can sponsor this plan
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