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Features of today's
most popular retirement plans 2004 |
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401(k) |
SIMPLE IRA |
SEP IRA |
Profit Sharing and Money
Purchase |
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Eligibility |
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Corporations |
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Subchapter S |
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| Self
Employed |
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Sole Proprietorships |
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Partnerships |
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Non-Profit |
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1 |
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Annual Contribution
Limit
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$12,000 salary
deferral ($14,000 if age 50 or
older) PLUS 25% of compensation
up to $40,000 ($42,000 if age 50
or older) |
$8,000 salary deferral
($9,000 if age 50 or older)
plus 3% of compensation |
25% of compensation up to $40,000 |
25% of compensation up to $40,000 |
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Mandatory Contributions |
No |
No |
No |
No |
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Establish Plan By |
Fiscal year-end (December 31 for
calendar-year plans) |
October 1 for existing businesses |
Tax-filing deadline plus extensions |
Fiscal year-end (December 31 for
calendar-year plans) |
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Contributions Due Date |
Salary deferrals by December 31
Employer contributions by tax-filing
deadline plus extensions |
Salary deferrals by December 31
Employer contributions by tax-filing
deadline plus extensions |
Tax-filing deadline plus extensions |
Tax-filing deadline plus extensions |
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Loans Available |
Yes |
No |
No |
Yes |
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Government Filings
Required |
Only when plan assets exceed $100,000 |
No |
No |
Only when plan assets exceed $100,000 |
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1 Employer
must not maintain any other plan.
TD Waterhouse does not provide tax or legal advice. It is recommended
that you consult with a tax advisor regarding your personal tax
situation. |
