Copyright © 2003 - 2005 by 401khelpcenter.com, LLC. All rights reserved. (Revised January 11, 2005)This chart is provided as general guidance on the subject covered and isnot intend to be authoritative or to provided legal, tax, or investment advice.Page
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Feature 401(k) Solo 401(k)Safe Harbor401(k)SIMPLE 401(k) Profit Sharing SEP IRA SIMPLE IRA
Basic plan type DefinedContributionDefinedContributionDefinedContributionDefinedContributionDefinedContributionIRA based IRA basedWho generallyadoptsCorporations,partnerships,limited liabilitycompaniesSoleproprietorships,partnerships,limited liabilitycompanies andcorporations withno common lawemployeesSoleproprietorships,partnerships,limited liabilitycompanies andcorporationsSoleproprietorships,partnerships,limited liabilitycompanies andcorporations with100 or fewereligible employeesSoleproprietorships,partnerships,limited liabilitycompanies andcorporationsSoleproprietorships,partnerships, andsmall businessesSoleproprietorships,partnerships,limited liabilitycompanies andcorporations with100 or feweremployeesCan employersponsor otherqualifiedretirement plansYes Yes Yes No Yes Yes No
Who cancontributeEmployee;employercontributions areoptionalEmployee;employercontributions areoptionalEmployee andemployerEmployee andemployerEmployer Employer Employee andemployerCost index Low to Highdepending upondesign complexity,service modeladopted and otherfactorsLow to Medium Low to Medium Low to Medium Low to Highdepending upondesign complexity,service modeladopted and otherfactorsLow LowMaximumemployee deferralcontributionThe lesser of $14,000 for 2005(indexed forinflation eachyear) or 100% of compensationThe lesser of $14,000 for 2005(indexed forinflation each year)or 100% of compensationThe lesser of $14,000 for 2005(indexed forinflation eachyear) or 100% of compensationThe lesser of $10,000 for 2005(indexed forinflation eachyear) or 100% of compensationNone None.Contributions aregenerally byEmployer onlyThe lesser of $10,000 for 2005(indexed forinflation eachyear) or 100% of compensation
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