Many financial institutions recommend SEPs and SIMPLE Plans as the go-to option for owner-only businesses because they can be established quickly without the help of a third party administrator. These plan designs, however, often limit contribution amounts, reduce tax savings, and are often not the best option. Read about the specialized options below that offer more benefits.
A SOLO 401(k) Plan is a great plan design for owners wishing to contribute up to $57,000 ($63,500 if age 50) and have the ability to access funds via tax-free loans and early withdrawal features.
Learn MoreCash Balance Plans are designed for employers seeking to fund much larger contributions than permitted in 401(k) plans, SEPs, and SIMPLEs. They allow contributions of $150,000 or more.
Learn MoreThese plans are well-suited for most owner-only businesses, including those operating as sole proprietors or partnerships – even partnerships with multiple partners. Spouses that work in the business can also participate. Below are common types of businesses that adopt these plans.
See the chart below showing the maximum contributions to each of the retirement plan designs for owner-only businesses.