The Act encourages employers to establish or maintain qualified retirement plans by providing more flexible nondiscrimination rules, higher contribution limits and direct incentives for small employers.
	Employer deductions to profit sharing plans will rise next year from a current cap of 15% to 25% of compensation for all eligible employees.
	Starting in 2002 the limit on annual additions to a defined contribution plan will rise to the lesser of 100% of compensation or $40,000 from its current level...the lesser of 25% up to $35,000 of compensation.
	Participant loans will be permitted in 2002 for sole proprietors, partners and subchapter S corporation shareholders
	The new rules provide employers with <100 employees to receive a tax credit on start-up costs for plan administration and education expenses equal to 50% of the first $1,000 for each of the first 3 plan years. The allowable credit is not permitted to also be deducted on the employer’s tax return.
	This credit applies to payroll deduction IRAs, SEP, SIMPLE, Defined Contribution or Defined Benefit Plans established in 2002 as long as there is one non-highly compensated employee being covered by the plan.