| . |
SIMPLE IRA's |
SIMPLE 401(k) |
401(k) |
| ADP/ACP |
No |
No |
Yes |
| Availability |
Non-government &
tax-exempt, 100 or
fewer employees,
more than $5,000 in
Compensation |
Non-government
100 or fewer
employees more
than $5,000 in
Compensation |
Non-government
organizations |
| Top-Heavy Rules |
No |
No |
Yes |
| Match |
100% of first 3%
$150,000 cap on
compensation does
not apply |
100% of first 3% |
Flexible |
| Flexibility of Match |
With advance notice
reduce to 1% for two of
5 years |
No |
Yes |
| Nonelective Alternative |
2% |
With notification 2% |
QNEC |
| Taxation |
25% penalty in first two
years, 10% thereafter |
10% Early
withdrawal penalty |
10% Early
withdrawal penalty |
| Deferral Maximum |
$6,000 indexed
Section 415 does not apply |
$6,000 indexed |
$9,500 indexed |
| Compensation |
W-2 plus deferrals |
W-2 plus deferrals |
Alternates available |
| Effective |
Years after 12/31/96 |
Years after 12/31/96 |
N/A |
| 5600 Filing |
No |
Yes |
Yes |
| Maintain another plan |
No |
Yes, but not for same
employees |
Yes |
| Other contributions |
No |
No |
Yes |
| Vesting for match |
Full |
Full |
Options available |
| Rollovers |
After two years in plan or to another SIMPLE |
Existing rules |
Existing rules |
