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Directory of
Solo 401k
and Small Business Retirement Plan Providers
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Featured Stories
Small Business Retirement Plans -- SEP-IRA vs. Solo 401k - Summary: This time of year many small business owners are looking for additional tax deductions. One of the best deductions is funding a retirement plan. Two popular plans are the SEP-IRA and Solo 401k. Here is a comparison of the main features of the two plans.
Solo 401k a Great Tool for Self-employed - Summary: If you are a freelancer, consultant or other self-employed person, the government offers a $50,000 tax break that could help secure your retirement. The solo 401k -- also known as the individual 401k -- was created by the Economic Growth and Tax Relief Reconciliation Act of 2001. For the 2012 tax year, it allows businesses with only one full-time employee-owner to contribute up to $50,000 to the plan ($55,500 for those 50 and older).
401k Plans: What Small Business Owners Should Know - Summary: Successful business owners come to understand that the recruitment and retention of key and qualified personnel are critical factors to the continued growth and profitability of their organization. The 401k plan, sometimes viewed as just another costly employee benefit, becomes an important tool.
Small Business Tax Credit for 401k Startup Costs - Summary: Startup costs have always been a major hurtle to small businesses who what to start a 401k plan, but a provision of The Economic Growth and Tax Relief and Reconciliation Act (EGTRRA) now helps scale this barrier to employee saving opportunities.
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401k Plans for Sole Proprietorships
Regulatory reform now allows Sole Proprietorships to set-up and contribute to a 401k plan. These are often called Solo 401k or Individual(k) plans. A number of vendors are beginning to market specific plans to meet this need.
We have put together a list of providers that offer these plans. Click here to obtain a copy of this list.
Calculator available. Click here to calculate how much you can contribute to a Solo 401k in comparison to a SEP or SIMPLE plan which have different limits.
General Features of a Solo 401k Plan:
| Plan Establishment |
Sole proprietors with no additional employees other than the spouse of the proprietor or partnerships whose only employees are self-employed partners and their spouses. |
| Trustee and Plan Administrator |
Business Owner, Spouse or Partner or any combination, or any other designated third party. |
Salary Deferral
Contributions |
Up to $17,500 (not to exceed 100% of pay and no more than $255,000 of pay can be taken into account). Total salary deferral and employer maximum is $51,000. |
Catch-up
Contributions |
Individuals age 50 or older may contribute an additional $5,500 in salary deferrals beyond the $17,500 which does not count towards the maximum total contribution limit of $51,000. |
| Employer Contributions |
Up to 25% of pay (20% for self-employed) to a maximum of $51,000. Salary deferral contributions are also counted towards this limit. |
| Rollovers |
Rollovers and transfers allowed from traditional IRA, SEP, Qualified Plans or Keoghs (Profit Sharing, Money Purchase Pension, Defined Benefit), 401k, 403(b) and governmental 457 plans. SIMPLE IRAs are eligible for rollover after two year holding period is met. |
| Loans |
Available to all participants, including unincorporated business owners. |
| Government Reporting |
IRS 5500-EZ. |
401k plans are subject to numerous and complex rules, regulations and tax qualification requirements. Be sure to consult with a qualified professional before making any decisions. |
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Information on Small Business Plans
Starting a small business retirement savings plan can be easier than you think. Here are some resources on a varity of retirement plans available to the small business person.
 Employer Retirement Plans Comparison Chart for Small Businesses - Summary: This chart provides a comparison of the features and benefits that apply to retirement plans that can be sponsored/adopted by small business owners. Focus is on the areas that are important to the business owner to ensure that the plan that is chosen is the plan that is most suitable for the business.
Retirement Plan Comparison Chart
IRS Publication 560, Retirement Plans for Small Business.
DOL's 401k Plans for Small Businesses
401k Plans for Small Businesses
Choosing a Retirement Plan for Your Small Business - Summary: In this article you will find a chart outlining the advantages of each of the most popular types of IRA-based and defined contribution plans and an overview of a defined benefit plan.
Retirement Plans FAQs Regarding SEPs
FAQs Regarding SIMPLE IRA Plans
SEP IRA Quick Reference Guide
SEP Vs SIMPLE IRA - Summary: This reference guide provides a comparison of some of the key features and benefits of these plans.
SIMPLE 401k Plans
SIMPLE IRA vs SIMPLE 401k's
Simple IRA Plans for Small Businesses
Best Retirement Plan for Small Business Owners?
Individual Retirement Account is an IRA that provides some tax advantages for retirement savings.
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