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?	Employers with no more than 100 employees including sole proprietors and non-profit entities (cannot maintain another qualified plan)
Maximum eligibility requirements	Employees must be 21 and have one year of service (typically 1,000 hours of credited service)
Are contributions mandatory?	Employer:Yes Employee: No
Contribution limits: Employer	Match deferrals 1-for-1 up to the first 3% of compensation (maximum match $6,900) or non-elective contribution of 2% on first $230,000
Contribution limits: Individual	$10,500 salary deferral limit under IRC Section 408(p)
Catch-Up contributions for workers age 50 and older	$2,500
When must the plan be established?	Oct. 1 for existing businesses or as soon as administratively feasible for businesses established after Oct. 1 and prior to onset of employee deferrals
When must Employer contributions be made?	Employer - by tax-filing date plus extensions Employee - on deferral basis
Who directs investments?	Employer/Trustee or plan may allow individual participant direction
Are loans available?	Yes
Vesting	Full & Immediate
Distributions before age 59 1/2	No tax penalty
Distributions after age 70 1/2	Required minimum distributions; 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	Contributions deductible for employer No discrimination testing Not subject to top-heavy rules Some funding responsibility with employees Deferral reduces taxable income to employee