EMPLOYER-ONLY FUNDED PLANS

	SEP-IRA Plan	Profit Sharing Plan	Money Purchase Pension Plan
Suitable For	Employers who would like to make contributions on behalf of their employees without the burden of extensive administration and paperwork.	Employers who would like maximum plan design flexibility with discretionary contributions on behalf of their employees.	Employers with predictable annual income who want to make a fixed contribution to employees each year. The contribution percentage is determined when the plan is established and generally cannot change.
Maximum Employer Deduction ¹	25%	25%	25%
Maximum Annual Employer Contribution to Participant Account ²	Lesser of $44,000 (2006) or 100% of compensation IMPORTANT! see ³ below.	Lesser of $44,000 (2006) or 100% of compensation IMPORTANT! see ³ below.	Lesser of $44000 (2006) or 100% of compensation IMPORTANT! see ³ below.
Required Annual Employer Contributions	Amounts may vary each year based on compensation. Employer is not required to contribute every year.	Amounts may vary each year based on profitability and compensation. Employer is not required to contribute every year.	Must contribute a fixed percentage of compensation each year, regardless of profits.
Maximum Employee Eligibility	Age requirement cannot exceed age 21. Service requirement cannot exceed three of the previous five years. Employee must earn at least $400 to receive a contribution.	Age requirement cannot exceed age 21. Service requirement cannot exceed one year of service, defined as 1,000 hours a year in a 12-consecutive-month period.	Age requirement cannot exceed age 21. Service requirement cannot exceed one year of service, defined as 1,000 hours a year in a 12-consecutive-month period.
Vesting	Immediate.	Immediate or deferred.	Immediate or deferred.
Other Design Features	Plan integration Participation by tax-exempt organizations (including state and local government).	Plan integration Loans Hardship withdrawals Participation by tax-exempt organizations	Plan integration Loans Hardship Withdrawals. Participation by tax-exempt organizations (including state and local governments)
Establishment Date	By tax filing date, plus extension if any.	By employer's tax-year end.	By employer's tax year end.
Reporting Requirements	No government filings required.	Qualified plan reporting.	Qualified plan reporting required.
Distributions	Premature distribution penalty tax of 10%.	Premature distribution penalty tax of 10%.	Premature distribution penalty tax of 10%

¹Maximum employer deduction means as a percentage of eligible payroll which includes the compensation of ALL employees ELIGIBLE to participate in the plan even if, in the case of a salary deferral program, an employee chooses not to defer so that no contribution is made on the behalf of that employee.

²This limit is known as the "annual addition". It represents the total amount that can be contributed on the behalf of any one participant for the year under ALL defined contribution plans sponsored by the employer, in the aggregate.

³While the maximum amount of compensation that can be taken into account for the purposes of contributions is $220,000; the $44,000 total limit effectively reduces this to $176,000