PROVISIONS Eligible employers             Number of employees Employee eligibility   Employee deferral contribution limits Matching contribution Required employer contribution   Additional employer contribution Vesting schedules Discrimination tests Distributions   Loans Contribution deposit deadlines Funding vehicle

SIMPLE IRA Any business, except the employer cannot maintain any other qualified plan. 100 or fewer employees earning at least $5,000 in prior year. Employee must have earned $5,000 in any prior two years and be expected to earn $5,000 in current year.  Can exclude nonresident alien & union employees. $10,500 ($13,000 if age 50 or more) maximum salary deferral (indexed).  Can defer 100% of employee's pay. Dollar-for dollar match, up to first 3% of compensation*;  ($6,900 maximum per employee). 3% matching contribution required OR 2% contribution to all eligible employees.  Based on a maximum or $230,000 in compensation ($4,600 maximum per employee). Not allowed. 100% vested at all times. Highly-compensated and non-highly compensated employees can each defer a maximum of $10,500 ($13,000 if age 50 or more) a year (no 125% test); no top-heavy requirement. Same as IRAs, unlimited, but subject to 10$ penalty if under age 59 1/2, 25% if within the first 2 years after the account is opened (exceptions do apply). Not allowed. Within 30 days after end of month relating to contribution. IRA. *Employer can reduce the match to no less than 1% in any two of five years.