Individual 401(k) Contribution Limits 2019 and 2020

Individual 401(k) Contribution Deadlines

Tax-year 2019 deadline is April 15th, 2020 (You may request an extension)
Tax-year 2020 deadline is April 15th, 2021 (You may request an extension)

Individual 401(k) Information

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) IRA Contribution Limits

	2019	2020
Employer Contributions	Up to $56,000	Up to $57,000
Employee Elective Deferrals	Up to $19,000	Up to $19,500
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 $56,000 for 2019 and $57,000 for 2020. Compensation limits and deductibility apply so contact your employer for further information.

Eligibility for Individual 401(k)

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.

Other Important Information

This type of plan has two components based on your role as both employer and employee:
- (Employee) Salary deferral, based on earned income, up to the allowed limit
- (Employer) Profit-sharing contribution, maximum 25% of compensation, up to the allowed limit

Individual 401(k) - Hassle Free Retirement

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.

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Individual 401(k) Contribution Limits