|
|
|
 |
|
Age-based plans especially appeal to business owners who are older and more highly paid than most of their employees. Like traditional profit sharing plans, employer contributions are flexible. But age-based plans allocate contributions under a formula based on both age and salary, giving older participants a higher percentage of salary than younger ones. For 2013, a business can contribute up to 25% of the total eligible payroll, with individual allocations limited to 100% of pay up to $51,000 (20% for unincorporated business owners).
|
| Who May Establish |
Sole proprietors, partnerships, corporations, government and nonprofit entities. |
| Establishment Deadlines |
Tax year-end. |
| Contribution Deadlines |
Tax filing date, including extensions. |
| Who Contributes |
Employer. |
| Annual Contribution Limit¹ |
25% of total eligible payroll (20% for unincorporated business owners), with no more than $255,000 of compensation being taken into account, with individual allocations limited to 100% of pay up to $51,000. |
| Contribution Requirements |
Contributions are discretionary each year. |
| Employee Eligibility |
All employees age 21 or older who have worked one year (or two years if
100% vesting is provided). May exclude employees who work fewer than 1,000
hours per year. |
| Vesting |
Gradual vesting permitted. |
| Withdrawals |
Allowed only if certain events occur, such as termination of employment, death or disability. Subject to income tax; a 10% penalty may apply before age 59½. |
| Loan Feature |
Permitted.² |
| Plan Administration |
IRS 5500 filings and other ERISA requirements.³ |
| |
|
|
|
|
|
|
Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your advisor or Pioneer Investments for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it here.
|
