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If you are an Independent Contractor, or Self-Employed, or a Sole Proprietor, then you, too, can have a 401(k) retirement savings plan.
There are two very significant advantages of the Owner Only 401(k) Plan vs. other retirement plans such as a SEP IRA, SIMPLE IRA, or Traditional IRA.
- You can contribute more to a 401(k) plan than a SEP, SIMPLE, or Traditional IRA, and
- You can borrow from your own 401(k) plan.
On the other hand, loans from any type of IRA are prohibited.
For example, how much more can you contribute to a 401(k) plan:
|
Salary |
Employer Contribution |
Maximum Elective Contribution |
Total Contribution |
| Owner |
$150,000 |
$37,500 |
$26,000 |
$63,500 |
Or you can add a spouse to your plan:
|
Salary |
Employer Contribution |
Maximum Elective Contribution |
Total Contribution |
| Owner |
$150,000 |
$37,500 |
$26,000 |
$63,500 |
| Owner's Spouse |
$26,000 |
$6,500 |
$19,500 |
$26,000 |
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Total Contribution → |
$89,500 |
Would you like a FREE look at what a 401(k) Plan can do for you? Complete the form below:
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