| Individual
401 (k) Plans
An individual 401 (k) plan for owner-only-businesses,
those with no employees other than the owner's spouse
and no plans to add employees in the near future.
Key Benefits of an Individual
410 (k) Plan:
-
Works like a 401 (k)
-
Both salary deferrals and
profit sharing contributions are discretionary.
You do not have to make deferrals or a profit
sharing contribution each year.
-
Rollovers from other eligible
plans, including traditional IRAs, are permitted
for consolidation ease.
-
Contributions are tax deductible,
and earnings accumulate on a tax-deferred
basis.
-
Loans are available.
|
Who Can Establish:
Annual Contributions:
-
All contributions are discretionary.
Compensation is earned income for self-employed
individuals or unincorporated businesses.
-
The maximum salary deferral
contribution is the lesser of $13,000 or 100%
of your compensation.
-
The profit sharing contribution
cannot exceed 25% of your eligible compensation.
-
Combined contributions
(both salary deferrals and profit sharing)
cannot exceed the lesser of 100% of compensation
of $41,000.
-
Additional catch-up contributions
of up to $3,000 are available if you are age
50 or older.
|
Individual 401 (k) Candidates:
-
Corporation, partnerships,
sole proprietorships, and nonprofit entities
that have no full time employees.
-
Owner-only business with
part-time or seasonal employees that can be
excluded from plan coverage.
-
Owner-only businesses with
their spouse being the only employee.
|
Contact a UVEST Investment
Consultant to go over your options for retirement.
|
