Click on the links below to compare the most common types of retirement plans.

401(k) Plan | Defined Benefit Plan | Profit Sharing Plans | Simple 401(k) Plans
Who can establish?	Corporations, Sub-Chapter S, Self Employed, Sole Proprietorships, Non-Profit
Maximum eligibility requirements	2 years of service with employer, 1,000 hours of credited service per year, and attainment of age 21
Are employee contributions mandatory?	No
Contribution limits: Employer	PS-25% of participating payroll. Allocation limited to lesser of 100% of gross compensation or $46,000 per participant
Contribution limits: Individual	No employee contributions
Catch-Up contributions for workers age 50 and older	Not available
When must the plan be established?	By fiscal year-end (12/31 for calendar-year plan)
When must Employer contributions be made?	By tax filing date plus extensions
Who directs investments?	Employer/Trustee or plan may allow individual participant direction
Are loans available?	Yes
Vesting	3 vesting schedules: immediate, cliff, graded
Distributions before age 59 1/2	10% tax penalty unless over 55 and separated from service (except if self-employed or more than 10% owner), death, or disability
Distributions after age 70 1/2	Required minimum distributions; may not aggregate total; each plan separate; may waive if still working and less than 5% owner
How are distributions taxed?	Taxed as ordinary income
Eligible Rollovers	Must have triggering event (e.g., plan termination, death, separation from service, disability, age 59 1/2)
Portability:Rollovers among plans	Qualified Plan 403(b) Plan 457 Governmental Plan SEP/IRA IRA
Advantages	Contribution discretionary Flexibility in plan design Loans may be allowed Contributions and plan expenses may be deductible by employer Vesting schedules may be applied to employer contributions