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Why Start a 401(k)?

Good for you, good for your company

Many financial experts agree that 401(k)s are the preferred way to help build wealth for retirement. 401(k) plans were created with unique advantages that can make a real difference in your savings:

  • $500 tax credit plus deductions to lower your cost
  • The highest contribution limits among retirement options
  • A Roth option with no income limits

401(k) Advantages Over Traditional IRAs
  401(k) IRA
Annual limit per individual $56,000 $6,000
Age 50+ catch-up amount $6,000 $1,000
Roth income limit None $137K*
Penalty-free access, if needed Yes, via a loan No


A 401(k) also allows for a self-employed business, just like those with employees, to contribute and/or receive up to 25% of W-2 payroll up to the $56,000 limit, or $62,000 if 50 years of age or more. As an owner-only business, you can profit share the amount you desire up to the entire 2019 limit prior to tax time, give some as an "employee" through year-end up to the $19,000 employee 2019 contribution limit, or both!

And there's more! Read on to discover how a new small-business 401(k) can benefit you.

Save more money, pay fewer taxes

IRAs are nice, but they lack some of the best features of a 401(k). Now small businesses have access to a 401(k) designed specifically for them, with all the same advantages that large companies have been enjoying for years:

Sound enticing? Click any of the above features to learn more, or read all about owner benefits and company benefits.

Next Steps

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401(k) Consultants are available
Monday - Friday, 9am - 8pm EST
800-943-6108 x1