401(k)s

Traditional 401(k)

Maximum employee deferral is the lesser of 100% of income or $19,500
Catch-up provision of $6,500 for participants age 50 or older
Discretionary annual company contribution
Restrictive distribution provisions
Loan feature and hardship withdrawals
Company contribution can be integrated with Social Security
Third-party administration company needed for annual testing and government reporting
25% company limit on discretionary and matching contributions combined
Discretionary company match feature
Maximum employee eligibility requirements: one year with 1,000 hours of service and/or age 21
Vesting schedules available
Total maximum contribution: $57,000
Total maximum contribution with catch-up: $63,500

Maximum employee deferral is the lesser of 100% of income or $19,500
Catch-up provision of $6,500 for participants age 50 or older
Mandatory company contribution: (1) Match- 100% on first 3% of compensation plus 50% on next 2% (Total of 4%) or (2) Non-elective- 3% of compensation
Restrictive distribution provisions
Loan feature and hardship withdrawals (employee deferrals only)
Third-party administration company needed for annual testing and government reporting
100% vesting on all safe harbor contributions, other employer contributions may be subject to a vesting schedule
ADP/ACP does not apply
Top-heavy satisfied with mandatory company match listed above
Maximum employee eligibility requirements: one year with 1,000 hours of service and/or age 21
Total maximum contribution: $57,000
Total maximum contribution with catch-up: $63,500

_{This information is provided as of November 13, 2020.}