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Business Retirement Plans |
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Profit-Sharing Plan |
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| Employer Characteristics | All taxable business, government entities & tax-exempt organizations |
| Who Must Be Covered | Any employee with 1,000 hours of service within one year & who is age 21 or older can exclude certain employees. (Plans with two-years-of-service eligibility requirement must offer immediate 100% vesting). |
| Maximum Allocation 2010 | Generally, 100% of participants total pay or $49,000 or which ever is less. |
| Maximum Annual Employee Deferral | No employee contributions are allowed. |
| Required Employer Contributions | Flexible contribution allowed each year (present amount not required); however, employer must make “substantial & recurring” contributions |
| Vesting | Vesting schedules available |
| Top-Heavy Testing Required | Yes |
| Who Controls Distributions | Employer through the plan terms |
| Advantage of this type of plan | Flexible contributions |