Employer Eligibility:
Sole Proprietorships
Partnerships
- S and C Corporations
- L.L.C.
- Non-Profit Organizations
- Government Entities
Contribution (Benefit) Limits:
Contributions are not limited, and are based on a number of factors. Contributions can be calculated to provide as high as 100% of average compensation of three highest years, up to $180,000 (2007) or $185,000 (2008) of benefit per year during retirement.
These plans can generally provide proportionally greater contributions to older, more highly compensated participants.
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.
If a vesting schedule is used, only one year can be required.
Set-up Deadline:
Business’s year end.
Contribution Deadline:
Earlier of business’s tax filing deadline, including extensions, or minimum funding deadline (Sept. 15 for calendar year plans).