| Plan Table |
| FEATURE | IRA | IRA | 401(k) | 401(k) | 401(k) |
| Participants | 1 - 100 | 1+ | Owner, co-owner and spouses | 2 - 99 | 100+ |
| Establishment | IRS 5305S/5305SA | IRS 5305-SEP/5305A-SEP | Document | Document | Document |
| Administrative Costs | Very low | Very low | Low | Moderate to Expensive | Expensive |
| Loans | No | No | Optional | Optional | Optional |
| Hardship Withdrawls | No | No | Optional | Optional | Optional |
| Vesting |
100% Immediate |
100% Immediate |
100% Immediate |
Gradual Permitted |
Gradual Permitted |
| 5500 Return | No | No | Not required if < $100K assets | Yes | Yes |
| Independent Audit | No | No | No | Yes, unless certain actions are taken | Yes |
| Contributions |
Employees optional; Employer must contribute for all employees who are eligible |
Discretionary employer contributions | Discretionary | Employee deferrals; Employer match may or may not be discretionary |
Employee deferrals; Employer match may or may not be discretionary |
2004 Contribution Limits |
Up to $9,000 can be eontributed by employee Employers must match deferrals dollar for dollar of up to 3% of pay or can make a 3% of compensation contribution for each eligible employee |
25% of employee compensation Maximum contribution of $41,000 per participant per individual |
Up to $13,000 can be deferred by employee Maximum combined employee & employer contribution of $41,000 per individual |
Up to $13,000 can be deferred by employee Maximum combined employee & employer contribution of $41,000 per individual |
Up to $13,000 can be deferred by employee Maximum combined employee & employer contribution of $41,000 per individual |
| Catch-up Contribution | Up to $1,500 | None | Up to $3000 | Up to $3000 | Up to $3000 |