Profit Sharing Employer Eligibility: Sole Proprietorships Partnerships - S and C Corporations
- L.L.C.
- Government Entities
Contribution (Benefit) Limits: Generally the lesser of 25% of compensation or:
$42,000 (2005)
$44,000 (2006)
$45,000 (2007)
$46,000 (2008)
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: Business’s tax filing deadline, including extensions.
| Age Weighted and Comparability Profit Sharing Employer Eligibility: Sole Proprietorships Partnerships - S and C Corporations
- L.L.C.
- Non-Profit Organizations
- Government Entities
Contribution (Benefit) Limits: Generally the lesser of 25% of compensation or:
$42,000 (2005)
$44,000 (2006)
$45,000 (2007)
$46,000 (2008)
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.
Set-up Deadline: Business’s year end.
Contribution Deadline: Business’s tax filing deadline, including extensions.
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