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|
SEP |
SIMPLE |
403(b) Salary Deferral Plan |
|
Eligible Employers |
| All employers,
including sole proprietors, partnerships, and corporations. |
Employers with
100 or fewer employees with $5,000 or more in compensation for the preceding
year. |
Public Educational
Organizations and any tax-exempt organization described in Section 501(c)(3)
of the Internal Revenue Code. (Most hospitals, churches, educational institutions,
and certain nonprofit organizations are included.) |
|
Contribution Limits |
|
Employer: 0-25% of compensation up to $50,000 for each eligible employee in 2012. |
Employee: 100% of compensation up to $11,500 in 2012.
Employer: Additional $11,500 maximum per year based on a 100% matching contribution
capped at 3% of employee compensation.
If you are age 50 or older, you may be eligible for a catch-up contribution of $2,500.
|
Employee: 100% of includible compensation up to $17,000 in 2012.
If you are age 50 or older, you may be eligible for a catch-up contribution of $5,500.
|
|
Required Employer Contributions |
|
None. |
Employer must contribute
either:
1. A 100% matching contribution capped at
3% of employee compensation. (Lower cap but not below 1% may be elected in 2 out
of 5 years), or
2. A 2% non-elective contribution for each eligible
employee. (Based on the first $250,000 of compensation in 2012.)
Note: No additional contributions may be made to the
plan. |
None. |
|
Are Employees Allowed to Contribute? |
|
No. |
Yes. |
Yes. |
|
Required Employee Eligibility |
| Age 21 with
service in 3 of the last 5 years. |
Employees
who:
1. Received at least
$5,000 in compensation during any 2 preceding years, and
2. Are reasonably
expected to receive at least $5,000 in compensation during the current year. |
Any employee
is eligible as long as their employer is making section 403(b) salary reduction
contributions available. |
|
Deadline for Establishing
a Plan |
| Due date for
filing the company's income tax return plus extensions (usually April 15). |
October 1 of
the year the first contribution will be made. |
N/A |
|
Contribution Deadline |
| Due date for
filing the company's income tax return plus extensions. |
Employee contributions
are made through salary deferrals.
Employer
contributions can be made up to the due date for filing the company's income tax
return plus extensions. |
Contributions are made through
salary deferrals. |
|
Vesting |
| 100% vested
at all times. |
100% vested
at all times. |
100% vested
at all times. |
|
Key Benefits |
|
Inexpensive.
Flexible Contributions.
No
Annual Form 5500 Filing.
No Discrimination Testing.
High Contribution Limits. |
Inexpensive.
No
Annual Form 5500 Filing.
No Discrimination Testing. |
Inexpensive.
No
Annual Form 5500 Filing.
No Discrimination Testing. |
|
Profit Sharing
|
Money
Purchase Plan
|
|
Eligible Employers
|
| All
employers, including sole proprietors, partnerships, and corporations. |
All
employers, including sole proprietors, partnerships, and corporations. |
|
Contribution Limits
|
|
0-25% of compensation annually up to $50,000 per eligible employee in 2012.
|
1-25% of compensation annually up to $50,000 per eligible employee in 2012.
|
|
Required
Employer Contributions
|
|
No. |
Yes. |
|
Are Employees Allowed to Contribute?
|
|
No. |
No. |
|
Required Employee
Eligibility
|
| Age 21
with 2 years of service; 1 year if there is a vesting schedule. |
Age
21 with 2 years of service; 1 year if there is a vesting schedule. |
|
Deadline for Establishing a Plan
|
| Plan
and Trust must be established by the employer's fiscal year end (usually
by December 31). |
Plan and Trust
must be established by the employer's fiscal year end (usually by December 31). |
|
Contribution Deadline
|
| Due
date for filing the company's income tax return plus extensions. |
Due
date for filing the company's income tax return plus extensions. |
|
Vesting
|
| Various vesting schedules allowed. |
Various
vesting schedules allowed. |
|
Required Reporting
|
|
Possible 5500 Filing.
|
Possible 5500 Filing.
|
|
Key Benefits
|
|
Maximum
contributions allowed.
Flexible
contributions.
|
Maximum
contributions allowed.
|