----American National Designed Benefits----

This table compares the key features and rules of the most popular employer-sponsored plan. This information can help you determine which plan best suits the needs of your business and your employees.

This guide is intended to give you general information; you should consult a tax advisor about your individual situation.

Plan type	SIMPLE-IRA	SEP Simplified Employee Pension	401(k)	Safe Harbor 401(k)	Profit- sharing	Money Purchase	Defined Benefit Pension
Who may establish?	-100 or fewer employees -All taxable businesses -Gov’t and tax-exempt organizations -Can have no other plan	-All taxable businesses, but appeals to small employers -Gov’t and tax-exempt organizations -Can have no other plan	-All taxable and tax-exempt businesses -No Gov’t entities -Can have other plans	Same as 401(k)	-All taxable and tax-exempt businesses -Gov’t entities	All taxable and tax-exempt businesses -Gov’t entities	All taxable and tax-exempt businesses -Gov’t entities
Employee eligibility	-Any employee earning $5,000 during any two preceding years -Can exclude certain employees	-Any employee who has worked for three of past five years and is age 21 or older -Can exclude employee earning less that $450/year	-Age 21 or older with at least one year of service (1,000 hours) -Can exclude certain employees	Same as 401(k)	-Age 21 or older with at least one year of service (1,000 hours) -Can exclude certain employees	-Age 21 or older with at least one year of service (1,000 hours) -Can exclude certain employees	-Age 21 or older with at least one year of service (1,000 hours) -Can exclude certain employees
Employee contributions	-100% of pay up to $11,500 -Catch-up contribution of $2,500 if age 50 or older	No participant contributions allowed	-100% of pay up to $16,500 -Catch-up contribution of $5,000 if age 50 or older	-100% of pay up to $16,500 -Catch-up contribution of $5,000 if age 50 or older	No participant contributions allowed	No participant contributions allowed	No participant contributions allowed
Employer contributions¹	-Dollar-for- dollar up to 3% of pay -OR, 2% of pay for all eligible employees	-None required, employer chooses each year -Allocation to each employee must be same percentage of pay as owner	Optional, unless plan is top-heavy	One of the following: -Basic match formula -Enhanced match formula -Nonelective contribution	Flexible contributions allowed from year to year	-Non- discretionary -Amount specified in plan document	Contributions based on anticipated benefit to be paid out during retirement and actuarial assumptions
Vesting	Immediate 100%	Immediate 100%	Optional vesting schedules	Immediate 100% on safe harbor contributions	Optional vesting schedules	Optional vesting schedules	Optional vesting schedules
Participant loans	N/A	N/A	Permitted	Permitted	Permitted	Permitted	Permitted
Who controls distributions²	Participant	Participant	Employer, per terms of plan	Employer, per terms of plan	Employer, per terms of plan	Employer, per terms of plan	Employer, per terms of plan
Admin. requirements and costs	-No IRS filing -No discrimination tests -Little or no record-keeping cost	-No IRS filing -No discrimination tests -Little or no record-keeping cost	-Subject to IRS filing -No discrimination tests -Record-keeping cost varies with plan size	-Subject to IRS filing -No discrimination tests -Record- keeping cost varies with plan size	-Subject to IRS filing -Limited discrimination tests -Record- keeping cost varies with plan size	-Subject to IRS filing -Limited discrimination tests -Record- keeping cost varies with plan size	-Subject to IRS filing -Limited discrimination tests -Record- keeping cost varies with plan size-Actuarial fees
Key features	-Minimal paperwork and expense -Flexibility in contribution amounts	-Minimal paperwork and expense -No requirement to make on-going contributions	-Customized plan design permitted -Vesting schedules -Forfeitures go back into plan	-Customized plan design permitted -Testing not required -Highest limits for employer and employee contributions	-Flexible contributions	A level of contribution can be specified	-Provides guaranteed annuity payment for life -Annual retirement benefit can be up to 100% of highest 3-year average pay ($180,000 max)

A plan is top-heavy if the total value of the accounts of all key employees is greater than 60% of the total value of the accounts of all employees.
When participants withdraw funds that were the result of pre-tax contributions, that money is subject to ordinary income tax. Any withdrawals made prior to age 59½ are subject to an additional 10% federal tax penalty.

Tax issues are subject to change and the foregoing does not constitute legal, tax or accounting advice. Please consult your professional advisors concerning your specific situation.