Self-Employed 401(k)

Who it's for

• Self-employed individual or business owner with no employees other than a spouse
• Available to sole proprietors, partnerships, C corporations,
  S corporations

Key advantages

• A 401(k) with potentially higher contribution limits than SEP IRA

Who can contribute

• Funded by employee deferrals and employer contributions

2018 employee contribution limits

• Up to $18,500 in salary deferrals; $24,500 if age 50 or older

2019 employee contribution limits

• Up to $19,000 in salary deferrals; $25,000 if age 50 or older

2018 employer contribution limits

• Employers may contribute up to 25% of compensation up to a maximum of $55,000.

2019 employer contribution limits

• Employers may contribute up to 25% of compensation up to a maximum of $56,000.

Administrative responsibilities

• Annual Form 5500 filing after plan assets exceed $250,000

Access to assets

• Cannot take withdrawals from the plan until a "trigger" event occurs, such as turning age 59½, disability, and/or plan termination

Plan setup deadlines

• Establish by December 31 (or fiscal year-end).