| 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 |
| 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) |
