This plan is a good option for self-employed owner-only companies, or an owner and spouse if they need the flexibility of making optional contributions each year.  These plans may be used in combination with a defined benefit plan to increase contribution amounts and flexibility of the DB plan.

CALCULATE HOW MUCH YOU COULD CONTRIBUTE

How It Works

A OnePerson (k) is a retirement savings plan specifically designed for self- employed business owners (including sole proprietorships, corporations, and limited liability corporations). Typically, it allows for higher contributions than a SEP or SIMPLE plan while providing the same tax benefits of a regular 401(k) without the high costs and standard employer/employee structure. The plan combines the features of a 401(k) plan and a profit sharing plan.

Once the plan is established, the business owner can open a Trust investment account at any financial institution and select any marketable investments.

The OnePerson(k) must be set up by the end of the business’ fiscal year, generally, December 31st.

View Eligible compensation chart

Combining a OnePerson (k) with a Defined Benefit Plan

Adding a 401(k) to a traditional Defined Benefit Plan allows the owner to:

  • Maximize deductible retirement contributions — the largest contribution of any qualified plan
  • Increase flexibility — Because the 401(k) contribution is not required each year, the business owner will only contribute in higher income years thus increasing control over total annual contributions. This is an advantage for clients whose income fluctuates from year to year.

When adding a 401(k) to a Defined Benefit Plan, the 401(k) contribution is limited to salary deferrals and employer contributions of not more than 6.0% unless the plan is covered by the Pension Benefit Guarantee Corporation (PBGC).

Getting Started

Please note these plans must be opened by the end of your fiscal year, usually December 31st

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Are you Eligible?

  • Individual business owner or
  • business owner and spouse
  • no non-family employees

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Call 866-269-2706 to talk to a consultant

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Questions about opening new plans

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