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Comparisons
For 2005
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SALARY
DEFERRAL RETIREMENT PLAN
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401(k)/Profit
Sharing |
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SIMPLE-IRA |
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Regular |
Safe
Harbor_ |
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Plan
must be setup by |
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(same
except) |
Oct
1, 2005 |
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| Eligible
Employer |
For
1 or more employees |
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No
more than 100 Employees
and no other retirement plan |
| Eligibility-Employee |
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| Service |
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0
- 12 months |
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0,1,or
2 previous calendar yrs |
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Hours Worked |
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0
- 1,000 hours |
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N/A |
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Min. Pay |
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N/A |
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0-$5,000 |
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| Employee
Deferral |
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Maximum $ |
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$14,000 |
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$10,000 |
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Plus age 50
Catch-up |
$
4,000 |
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$
2,000 |
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| Limits
on Owner's |
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| Deferral |
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Yes
- based on employee
participation |
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No, can make
max contribution
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No,
can make max contribution |
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| Company
Contribution |
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Match |
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Not
required - elective |
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Required
- 4% only if empl. defers up to
5% or 3% non-elective cont.
to all employees |
Required
- 3% only if employee defers up to 3%
or a 2% contribution to all employees |
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Profit
Sharing |
Not
Required - elective |
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None
- not allowed |
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| Max
Contribution |
$42,000
plus $4,000
age 50 |
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$16,300
plus $2,000 age 50 |
| Deferral,
Match, P.S. |
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Assumes
3% match at |
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$210,000
compensation |
| Vesting
Schedule |
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| for
Match & Profit Sharing |
Yes |
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No
for match and non-elective |
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No |
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contribution |
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Yes
for profit
sharing |
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| Loan
Provision |
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Yes.
No tax or penalty |
Yes |
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No |
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| Creditor
Protection |
Yes |
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No |
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| Administration
Fees |
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Company |
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Yes* |
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None |
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Employee |
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0-$30
Annual custodial fee |
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0-$30
Annual custodial fee |
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Distribution
of
funds for |
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terminated
employee by
company |
Yes |
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No
- it's employee account |
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| *
Third party administrator (varies based on number
of employees and investments selected) |
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Set-up =
$1,000 - $1,500
Annual = $1,000 - $2,500 |
| ©
Harry Rubins 538-8009
For Information Purposes Only |
Forms/comparison
chart |
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