Comparison of Elective Deferral Plans

SIMPLE IRA’s

SIMPLE 401(k)

401(k)

SAFE-HARBOR 401(k) PLAN

Available to Employers

100 or fewer employees

100 or fewer employees

Non-Government Organizations

Non-Government Organizations

Can maintain another plan?

No

No

Yes

Yes

Eligibility Requirements

> $5K in any 2 prior years;  Expected to earn $5K in current year

> $5K in compensation;  Age 21/12 months/ 1,000 hours

Age 21/12 months/ 1,000 hours

Age 21/12 months/ 1,000 hours

Top-Heavy Contribution Rules

No

No

Yes

Yes

Maximum Deferral Contributions*

$12,000

$12,000

$17,500

$17,500

Match

100% of first 3%

100% of first 3%

Flexible

100% up to 3%

50% from 3% to 5%

Flexibility of Match

With advance notification – reduce to 1% for 2 of 5 years

No

Yes

Alternate Rule Available

Non-Elective Alternative

2% of pay

With notification

2% of pay

N/A

3% of pay

Vesting on Employer Contributions

100% immediate

100% immediate

Yes, except for QNECs or QMACs

100% immediate

Other Employer Contributions

No

No

Yes

Yes

Taxation on Withdrawals

25% penalty in first 2 years; 10% thereafter

10% early withdrawal penalty

10% early withdrawal penalty

10% early withdrawal penalty

ADP/ACP Tests

No

No

Yes

No

5500 Filing

No

Yes

Yes

Yes

Rollovers

After 2 years of participation or termination of employment

Existing Rules

Existing Rules

Existing Rules


* Based on 2014 Plan Year Limits