| SEP IRA | SIMPLE IRA | SIMPLE 401(k) | 401(k) | Roth 401(k) | 403(b) | Roth 403(b) | 457 | Profit Sharing (incl ESOP) | Money Purchase | Defined Benefit |
|---|
| Eligibility | Must include employees: 1) Age 21+; 2) employed 3 of last 5 plan years; 3) earn at least $550 in the current year | 21 years of age,
Employer is required to let you enroll within 1 year of service | 21 years of age,
Employer is required to let you enroll within 1 year of service | 21 years of age,
Employer is required to let you enroll within 1 year of service | 21 years of age,
Employer is required to let you enroll within 1 year of service | Employee of a tax-exempt religious, charitable, or educational organization | Employee of a tax-exempt religious, charitable, or educational organization | Government employees | | | |
| Employee contribution limits | $56,000 | $13,500 | $13,500 | $23,500 | $23,500 | $23,500 | $23,500 | $23,500 (
During last 3 years prior to retirement contribution limit gets doubled.) | No employee contribution | Generally no employee contribution | Generally no employee contribution |
| Annual catch-up contribution limits if age 50+ at year end (2009) | None | $3,000 | $3,000 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | None | None | None |
| Employer contribution limits | Employer: 20% of income up to annual compensation limit | | | Lower of 25% of annual compensation limit or 100% of annual compensation | | | | | | | |
| Annual employee + employer contribution limits | Based on above | $13,500 | $13,500 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 | $58,000 |
| Annual compensation limit | $265,000 | | | $265,000 | $265,000 | $265,000 | $265,000 | $265,000 | $265,000 | $265,000 | $265,000 |
| Federal tax treatment (contributions) | Employee pre-tax,
Employer pre-tax | Employee pre-tax,
Employer pre-tax | | Employee pre-tax,
Employer pre-tax | Employee contributes after tax | Employee pre-tax | Employee after tax | Employee pre-tax | Employer pre-tax | Employer pre-tax | Employer pre-tax |
| Vesting Schedule | 100% vested at all times | | | Check employer's summary plan description. All vested after 3 years in one go gradually vesting 20% each year 2 through 6. | | | | | Check employer's summary plan description. All vested after 3 years in one go gradually vesting 20% each year 2 through 6. | Check employer's summary plan description. All vested after 3 years in one go gradually vesting 20% each year 2 through 6. | Check employer's summary plan description. All vested after 5 years in one go gradually vesting 20% each year 3 through 7. |
| Penalty for early withdrawals (before age 59 1/2) | 10% of withdrawal amount | 10% (but 25% for withdrawals within 2 years of beginning participation in plan) | 10% (but 25% for withdrawals within 2 years of beginning participation in plan) | 10% of withdrawal amount | 10% of earnings withdrawn | 10% of withdrawal amount | 10% of earnings withdrawn | No 10% penalty although withdrawal is subject to ordinary taxes | 10% of withdrawal amount | 10% of withdrawal amount | 10% of withdrawal amount |
| Penalty free early withdrawals | In service withdrawals after 2 years of service | | | Death, disability, and plan termination | Unlike Roth IRA, no first time home buyer withdrawal available. | Allow in-servicewithdrawals | After separation from service and 55 years of age. | | | Death, disability, and plan termination | |
| Loan provision | | | | Loan up to the lower of 50% of account balance and $50,000.
Loan term is generally 5 years. | | | | | | Can take a loan, unusaul though. | |
| Income tax reporting of distributions for annual filing | Form 1040, p. 1 | Form 1040, p. 1 | Form 1040, p. 1 | Form 1040, p. 1 | Form 1040, p. 1 | Form 1040, p. 1 | Form 1040, p. 1 | Form 1040, p. 1 | Form 1040, p. 1 | Form 1040, p. 1 | Form 1040, p. 1 |
| Annual income tax compliance reporting of distributions | Form 1099-R | Form 1099-R | Form 1099-R | Form 1099-R | Form 1099-R | Form 1099-R | Form 1099-R | Form 1099-R | Form 1099-R | Form 1099-R | Form 1099-R |
| Record keeping guidelines for individuals | Log annual non-deductible for state purposes | | | | Log annual non-deductible for state purposes | | Log annual non-deductible for state purposes | | | | |
| Required distributions age | 70.5 | 70.5 | None | 70.5 | 70.5 | | None | | | | |
| Income tax reporting of contributions for annual filing | Form 1040, p.1 | Form 1040, p.1 | Form 1040, p.1 | W-2, Form 1040 | | W-2, Form 1040 | | W-2, Form 1040 | W-2, Form 1040 | W-2, Form 1040 | None |
| Annual income tax compliance reporting of contributions and account values (informational) | Form 5498 | Form 5498 | Form 5498 | Form 5500 | Form 5498 | | Form 5498 | | Form 5500 | Form 5500 | Form 5500 |
| Other features | Does not allow 10-year forward averaging | | | | | Allow 10-year forward averaging | | | | | |
