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Summary > Summary - Pg. 115

Staffing Up Payroll Deduction IRA SIMPLE-IRA 401(k) Profit Sharing Defined Benefit Money Purchase Plan Employee contributions remitted through payroll deduction. Employee salary reduction contributions and/or employer contributions. Employee salary reduction contributions and/or employer contributions. Employer contribution level can be determined year to year. Primarily employer; may require or permit employee contributions. Employer contributions only. 115 Maximum Annual Contribution Per Participant SEP-IRA Payroll Deduction IRA SIMPLE-IRA Up to 15% of compensation or maximum of $24,000 (indexed). $2,000 Employee: $6,000 per year (indexed). Employer: Either match employee contributions $ for $ up to 3% of compensation (can be reduced to as low as 1% in any 2 out of 5 yrs.) or contribute 2% of each eligible employee's compensation, up to $3,200 Employee: $10,000 (indexed). Employer/Employee combined: Up to a maximum of 15% of compensation or a maximum of $30,000. Up to a maximum of 15% of salary or a maximum of $30,000. Per plan terms, employer may permit or require employee contribution. Up to a maximum of 25% of salary or a maximum of $30,000. 401(k) Profit Sharing Defined Benefit Money Purchase Plan Minimum Employee Coverage Requirements SEP-IRA Must be offered to all employees who are at least 21 years of age, employed by the business for 3 of last 5 years and earned at least $400 in a year.