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) should be set up by December 31 and at the latest by the business’ tax filing deadline including extensions for the plan 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).
Please note these plans should be opened by December 31 and at the latest by the business’ tax filing deadline including extensions for the plan year.
Are you Eligible?
Call 866-269-2706 to talk to a consultant