Who May Establish |
A company who employs only the owner(s) and their spouses, if applicable, and have no common-law employees. |
Administrator Testing |
None. |
Establishment |
New plans must be established by the last business day of the company's fiscal year. |
Employee Eligibility Requirements |
Owner(s) and their spouses, if the spouse is actively employed and receives W-2 income. |
Excludable Employees |
Part-time employees (those working less than 1,000 hours per year). |
Owner/Spouse Employee Contribution Limit |
Maximum employee deferral is the lesser of 100 percent of income or $18,000. |
Catch-up Contributions |
Up to $6,000 for participants age 50 or older. |
Employer Contributions |
Discretionary: Maximum of 20 percent of adjusted net business income or 25 percent of W-2 compensation after application of FICA,
not to exceed $53,000 when combined with salary deferral feature. $59,000 for those age 50 and beyond. |
Annual Custodial Fee |
$18 |