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Who May Adopt? |
Employers of all sizes |
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Employee Eligibility Requirements |
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Maximum Requirements: |
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Age 21 and 1 year (1,000 hours) of service |
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* Less restrictive requirements allowed |
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Employee Deferral Contributions |
Not permitted |
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Employer Matching/QNEC Contributions
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Not permitted |
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Employer Profit Sharing Contributions
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Discretionary formulas allowed based on either: |
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Non-integrated (or comp-to-comp) formula, or |
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Integrated (social security wage base) formula |
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Plans may also provide that employees must be employed on
the last day of the plan year and must work up to 1000 hours
to receive a contribution. |
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Maximum Annual Contributions |
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Employer Contributions are limited to: |
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25% of eligible participant wages |
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Employee Annual Additions are limited to: |
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Lesser of $49,000 or 100% of compensation (2009) |
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Are Catch-up Contributions Allowed? |
No |
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Contribution Deadlines
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Employer Contributions must be made by the employer’s tax
filing deadline, including extensions. |
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Vesting Schedule |
If a two (2) year eligibility service requirement is elected, Employer
Contributions are 100% vested immediately
If a one (1) year or less eligibility service requirement is elected,
Employer Contributions may be subject to a vesting schedule
which must be defined in the plan document. |
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Withdrawals and Loans
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Withdrawals permitted only upon termination, death, disability or
retirement.
Plans may elect to allow hardship or in-service withdrawals
Plans may elect to allow plan loans and must specify the parameters under
which a participant can take a loan. |
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Administration & Reporting Requirements |
Top-heavy and non-discrimination testing required
Form 5500 filing required
Fidelity Bond required |
