Types of Plans

View the type of plans in a chart here

401(k) Plan 457(b) Governmental Plan 457(b) Non-Profit Plan
403(b) Plan Defined Benefit Plan Money Purchase Plan
401(a) Profit Sharing Plan Cash Balance Plan SIMPLE 401(k) Plan

 


401(k) Plan

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

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

403(b) Plan

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
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

401(a) Profit Sharing Plan

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
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


457(b) Governmental Plan

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

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)


Defined Benefit Plan

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
Loans PermittedRollovers

  • 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


Cash Balance Plan

View more on cash balance plans here

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
Loans PermittedRollovers

  • 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

457(b) Non-Profit Plan

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

 

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


Money Purchase Plan

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

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

SIMPLE 401(k) Plan

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

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

Return to Top of Page