Employer matching or other contributions can be designed to be discretionary for maximum flexibility. Special anti-discrimination tests are required. Employee contributions must be deferred in the calendar year they are earned. Employer discretionary contributions must be made by tax filing deadline date, plus extensions. Employees with 1 year of service at 1,000 hours per year and 21 years of age.
Employers can choose to be less restrictive.
Employee contributions are immediately vested. Employer contributions that are not used to meet anti-discrimination tests may be subject to the same types of vesting schedules as profit sharing plans. Yes, plan can permit loans. Plan documents need to be executed before employee contributions can be deferred. Completion of plan document and trust agreement by employer.