| Company Profile |
Typically small with 25 or fewer
employees
Desires minimal paperwork
Wants Flexibility of contributions
Requires easy administration |
IRA: Up to 100 employees
Desires minimal paperwork
401(k):Wants low contribution requirements
Desires benefits of standard 401(k) without complex testing
Has many long term highly compensated employees |
Any size
Desires flexibility of contribution each year |
Typically large with more than 50
employees
Desires flexibility and enhanced benefits for employees
May have younger employees with higher turnover |
Any size
Wants to maximize deductible contributions
Willing to contribute a predetermined, fixed percentage of
employees compensation each year |
| Eligible Employees |
21 years or older, earnings of $450 or more in the
current year and service in 3 of the last 5 years |
IRA: Earnings of $5000 in any 2 preceding years and at
least $5000 expected in the current year
401(k): Same as standard 401(k) plan |
21 years or older and 1 year of service
(1 year = 1000 hours) |
21 years or older and 1 year of service
(1 year = 1000 hours) |
21 years or older and 1 year of service
(1 year = 1000 hours) |