401K Employer Eligibility: Sole Proprietorships Partnerships S and C Corporations- L.L.C.
- Non-profit Organizations
Contribution (Benefit) Limits: Under Age 50:
$14,000 in 2005 $15,000 in 2006 $15,500 in 2007 $15,500 in 2008 Catch-up: Age 50 and Up
$4,000 in 2005 $5,000 in 2006 $5,000 in 2007 $5,000 in 2008 Total additional employer contributions such as matching and profit sharing cannot exceed 25% of compensation.
Total of salary deferrals, matching, profit sharing, and any after tax contributions (if allowed) cannot exceed $46,000 ($51,000 if age 50 and older) or 100% of compensation in 2008. Starting in 2006, participants can elect to make Roth deferral contributions.
Maximum Employee Eligibility Requirements: An employer can require that an employee: 1) be age 21, AND 2) work 1,000 hours in the preceding year.
Set-up Deadline: Business’s year end.
Contribution Deadline: Salary deferral contributions must be deposited no later than 15 business days after the end of the month of deferral. Matching and profit sharing are due by the business’s tax filing deadline, including extensions
| Safe Harbor 401k Employer Eligibility: Sole Proprietorships Partnerships S and C Corporations- L.L.C.
- Non-profit Organizations
Contribution (Benefit) Limits:
Same as 401k Total additional employer contributions such as matching and profit sharing cannot exceed 25% of compensation.
Employers are required to offer eligible employees a match of at least 4% or make a mandatory contribution of 3% of compensation. Total of salary deferrals, matching, profit sharing, and any after tax contributions (if allowed) cannot exceed $46,000 ($51,000 if age 50 and older) or 100% of compensation in 2008. Starting in 2006, participants can elect to make Roth deferral contributions.
Maximum Employee Eligibility Requirements: Same as 401k.
Set-up Deadline: October 1 of the current year. Should be established early in the year to allow time for salary deferrals.
Contribution Deadline: Same as 401k.
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