An Individual 401(k) is a retirement plan that provides small business owners maximum flexibility and freedom to invest in alternative assets. Designed for businesses with no eligible rank-and-file employees. Has the same benefits and features of a 401(k).
Individual 401(k) Contribution Limits
|Employer Contributions||Up to $55,000||Up to $56,000|
|Employee Elective Deferrals||Up to $18,000||Up to $19,000|
|Catch-Up Elective Deferral Contribution Age 50+||Up to $6,000||Up to $6,000|
|The employer can contribute up to the smaller of 25% of your compensation up to the maximum limit. Employer contributions and employee elective deferrals in aggregate may not exceed $55,000 for 2018, and $56,000 for 2019. Compensation limits and deductibility apply so contact your employer for further information|
Any business, sole proprietor, partnership, or corporation with no employees other than you and other owners along with spouses who work for the business.
Taxable compensation has been received during the year.
This type of plan has two components based on your role as both employer and employee:
An Individual 401(k) allows the business owner complete control. You may act as both the employee and employer. Contributions can be made in both capacities and the plan is not subject to discrimination testing since there are no rank-to-file employees.