| Employer Characteristics | Organizations qualified under Internal Revenue Code Section 501(c)(3), such as schools & nonprofit organizations |
| Who Must Be Covered | After the first employee is allowed to participate, all other employees who want to contribute at least $200 per year must be allowed to participate, regardless of years of service |
| Maximum Allocation 2011 | 100% of employee’s total pay up to $49,000 whichever is less |
| Maximum Annual Employee Deferral 2011 | Catch-up contributions of $5,500 if 50 years of age or older |
| Required Employer Contributions | None |
| Vesting | Vesting schedules are available |
| Top-Heavy Testing Required | No |
| Who Controls Distributions | Employer, through the plan terms |
| Advantage of this type of plan | -More flexibility with contribution amounts due to increase in deferral limit
-Employee deferral of current taxes |
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