Money Purchase and Target Benefit Pension Plans
| |
Money Purchase Pension
Plans |
Target Benefit Pension
Plans |
| Limit on the # of Employees
Within the Company |
No limits |
No limits |
| Employee Salary Deferral
Contributions |
Not Allowed |
Not Allowed |
Maximum Eligibility
Requirements
Age
Service
(Yr of Service Requirement) |
21
0 to 2 yrs
(1000 hours) |
21
0 to 2 yrs
(1000 hours) |
| Mandatory Employer
Contributions Required |
Yes |
Yes |
| Employer Matching
Contributions |
Not available |
Not available |
| Employer Elective or
Nonelective Contributions |
Up to 25% of total EE compensation |
Up to 25% of total EE compensation |
| Loan Provisions |
Yes |
Yes |
| Hardship Withdrawal
Provisions |
No |
No |
In-Service Distributions
Before age 59 ½
After age 59 ½ |
Yes – not required
Yes – not required |
Yes – not required
Yes – not required |
| 100 % Vesting Required? |
No |
No |
| 5500 Tax Filings &
Summary Annual Reports Required |
Yes |
Yes |
| ADP Testing Required |
No |
No |
| Maximum Company Tax Deduction |
Amount not to exceed 25% of comp. |
Amount not to exceed 25% of comp. |
| Top Heavy Contributions
Required (if Plan is Top Heavy) |
Up to 3% of non-key employees
compensation |
Up to 3% of non-key employees
compensation |
| Calendar Plan Year Required |
No |
No |
| IRS Section 415 Limit |
Lesser of 100% of compensation or $44,000
(2006) |
Lesser of 100% of compensation or $44,000
(2006) |
