|
Type of Plan |
Profit Sharing & Money
Purchase |
SEP-IRA |
SIMPLE IRA |
401(k) |
|
Most Useful For |
Employers seeking to maximize contributions |
Employers seeking a low-cost, flexible plan |
Employers who want to allow employees to contribute |
Employers seeking salary reduction plan with most design option |
|
# of employees permitted |
Any
size |
Any
size |
Any
size |
Any
size |
|
Contribution limits
(2003)* |
Up to
100% of compensation or $40,000 |
Up to
25% of compensation or $40,000 |
Employees can contribute up to $8000 ($9000 if over age 50); employer
match required |
$12,000
deferral ($14,000, if over age 50, by 12-31 of contribution year) |
|
Deadline to set up/fund
for 2003* |
Set up
by 12-31-03; Fund by tax filing deadline |
Tax
filing deadline plus extension |
Set up
by 10-1-03; Employer match by tax filing deadline |
Set up
by 12-31-03; Fund by tax filing deadline plus extension |
