|Who May Establish
- All business types.
- For profit and not-for-profit organizations of any size.
||New plans must be established by the employer's fiscal year end.
||Employer discretionary annual contribution:
- 25 percent limit.
- 20 percent for sole proprietors and partnerships.
- Total maximum of $51,000.
||Employer contributions may be subject to a vesting schedule if elected by the employer in the Plan Adoption Agreement.
||Yes, if employer elects on Plan Adoption Agreement.
|Employee Eligibility Requirements
- One year with 1,000 hours of service (two years is available with 100 percent immediate vesting only).
- 21 years old.
||Employer contributions due by the employer’s tax filing due date, plus IRS-approved filing extension.