Ideal for accountants, attorneys, dentists, entrepreneurs, physicians, real
estate brokers, consultants, contractors and other self-employed individuals
- Shelter your profits for retirement while saving money with an affordable
401(k) plan
- Focus on running your business with our convenient, low maintenance plan
- Get started quickly with fast online plan setup
- Benefit from higher contribution limits
- Determine the profit-sharing funding
you want
- Customize a plan to suit your business with our flexible plan design
Frequently Asked Questions
- Q. Who can use PLAN4ONE?
-
A. PLAN4ONE is designed specifically for businesses that either do not employ any
common law employees or that employ only common-law employees who may be disregarded
for purposes of federal qualified plan coverage requirements. Generally, any business
or enterprise that employs only the owner(s) and/or spouse(s) of the owner(s) can
utilize the PLAN4ONE. These businesses include:
- Q. What if I have ownership in more than one business?
-
A. You may have to include all businesses under one business retirement plan (depending
on whether the
business constitutes a “controlled group,”
as defined under section 1563 of the Internal Revenue Code).
- Q. What are the contribution limits?
-
A. Plan contributions cannot exceed the lesser of
$49,000
or 100% of compensation. Employee deferrals are limited to
$16,500
(employees age 50 and over can contribute an additional $5,500).¹ The employer
contribution limit is 25% of compensation.¹
- Q. Are rollover contributions allowed?
-
A. Yes, rollovers and transfers are allowed from most other tax-deferred retirement
plans, including Keoghs, defined benefit
plans, deductible and conduit IRAs, SEPs,
401(k)s, profit sharing and money purchase
plans, SIMPLE IRAs after two years of SIMPLE participation and 403(b) and governmental 457 plans.
- Q. What is the deadline for funding a PLAN4ONE?
-
A. The deadline for funding the profit sharing portion is the business's tax return
due date, including extensions. The deadline for depositing employee salary deferrals
depends on whether or not the business is incorporated.
- Q. What is the deadline for an employee salary deferral election?
-
A. Owners of an unincorporated business (i.e., sole proprietor or partner) must
generally make a written employee salary deferral election (including amount) by
no later than the last day of their tax year. If a business is incorporated, it
must generally make a written employee salary deferral election (including amount)
before the compensation is currently available or paid.
- Q. Can personal loans be taken against the PLAN4ONE?
-
A. Yes, incorporated and unincorporated business owners are eligible to
take personal loans from qualified plans.
- Q. What types of employees can generally be excluded from the PLAN4ONE?
-
A. Generally, under federal law you are permitted to exclude the following types
of employees from coverage under a 401(k) plan, such as the PLAN4ONE:
- Employees under age 21
- Employees with less than one year of service
- Employees who work less than 1,000 hours per year
- Certain union employees
- Certain nonresident alien
employees
¹ 2010 limits. Limits are indexed annually.
This information does not constitute tax advice. Please consult your tax adviser
for specific tax information.