Matching contributions are optional. The employer can elect to match only deferrals of the non-highly compensated group. Must meet nondiscrimination test requirements. There are tests for both salary deferrals as well as any matching contributions. The employer may have to refund excess amounts to pass the test.
Employer chooses vesting schedule for profit sharing contribution.
The company contribution can be discretionary from year to year, in terms of whether to contribute and how much, up to prescribed limits. No nondiscrimination testing required. The employer can elect to match only deferrals of the non-highly compensated group. Nondiscrimination testing is not required. Maximum 100 employees.