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Information for Small Businesses

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How Much to Contribute to Your Solo 401k in 2016 - Summary: How much you should save for retirement can depend on many factors, such as your current savings, any debt, your income, and your retirement goals. The more you can afford to save, the faster you will reach your retirement goals.

Expanding Access to Retirement Savings for Small Business - Summary: In this 11-page paper, Blackrock reviews key federal retirement initiatives and several of the state proposals around expanding access to retirement savings for small business. They offer suggestions on how Congress and the DOL can eliminate unnecessary obstacles to small employers face and caution on the potential for creating regulatory arbitrage that may result in reduced retirement savings.

What to Consider When Setting up a 401k Plan for Small Business - Summary: Setting up a 401k plan for small business is still an essential step to ensure financial security in the long term. With the right choice, small business owners can still choose a retirement solutions to fit with their budget and business size.

Choosing a Retirement Solution for Your Small Business - Summary: Starting a retirement savings plan can be easier than most business owners think. What's more, there are a number of retirement programs that provide tax advantages to both employers and employees.


Directory of Solo 401k and Small Business Retirement Plan Providers: Click here to download.
Solo 401k Calculator available here.
A glossary retirement plan and investment terms available here.

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
Up to $18,000 (not to exceed 100% of pay and no more than $265,000 of pay can be taken into account). Total salary deferral and employer maximum is $53,000.
Individuals age 50 or older may contribute an additional $6,000 in salary deferrals beyond the $18,000 which does not count towards the maximum total contribution limit of $53,000.
Employer Contributions Up to 25% of pay (20% for self-employed) to a maximum of $53,000. 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.

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 Retirement Plans For Small Businesses

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 Plans for Small Businesses

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