Compare 401(k) Plans


Type of Plan	401(k) 401(k) Profit Sharing/Match 401(k) Safe Harbor	401(k) Safe Harbor	401(k) Profit Sharing
Who May Establish	Any type of employer with an unlimited number of employees	Organizations with 2-10 total number of employees	Owner-only business sole proprietors, (partnerships, corporations, S Corp) Accommodates multiple owner(s) and spouse(s)
Maximum Employee Deferral	$14,000 - 2005 $15,000 - 2006 $15,500 - 2007 - 08 $16,500 - 2009 - 10	$14,000 - 2005 $15,000 - 2006 $15,500 - 2007 - 08 $16,500 - 2009 - 10	$14,000 - 2005 $15,000 - 2006 $15,500 - 2007 - 08 $16,500 - 2009 - 10
Maximum Employee Catch-Up Contribution (age 50 and older)	$4,000 - 2005 $5,000 - 2006 $5,000 - 2007 - 08 $5,500 - 2009 - 10	$4,000 - 2005 $5,000 - 2006 $5,000 - 2007 - 08 $5,500 - 2009 - 10	$4,000 - 2005 $5,000 - 2006 $5,000 - 2007 - 08 $5,500 - 2009 - 10
Employer Contribution Options	Discretionary Profit Sharing Match Safe Harbor Options 100% of 4%, 5%, or 6% to participants OR 3% - 6% non-elective to all eligible participants	Mandatory Match 100% of 4%, 5%, or 6% to participants OR 3% - 6% non-elective to all eligible participants Discretionary Profit Sharing	Discretionary Profit Sharing Match
Vesting	Traditional Match/Profit Sharing 100% immediate 3 year cliff 4 year graded 5 year graded 6 year graded	Mandatory Match: 100% immediate Profit Sharing: 100% immediate 3 year cliff 4 year graded 5 year graded 6 year graded	Profit Sharing 100% immediate
Loans	Lesser of 50% of vested account balance or $50,000 Minimum amount $1,000 Maximum of two outstanding loans	Lesser of 50% of vested account balance or $50,000 Minimum amount $1,000 Maximum of two outstanding loans	Lesser of 50% of vested account balance or $50,000 Minimum amount $1,000 Maximum of two outstanding loans
Withdrawals and Distributions	Yes	Yes	Yes including hardships
ADP/ACP Testing	Yes	Generally Satisfied	No
Top Heavy Testing	Yes	Generally Satisfied	No
Investment Options	15 Core Index Funds 1 Money Market Fund 5 Model Portfolios	15 Core Index Funds 1 Money Market Fund 5 Model Portfolios	15 Core Index Funds 1 Money Market Fund 5 Model Portfolios

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