Owner-only 401(k) Plan

You may be a one-person business, but that doesn't mean you can't save for retirement like a large company. The Edward Jones Owner K® is an owner-only 401(k) plan, designed for business owners – with no employees other than their spouse – who want to increase or maximize pretax retirement contributions with flexibility. Any business with no employees other than owners and their spouse can set up this plan (including self-employed individuals, corporations and partnerships). 

Consider the following:

  • The contribution limits are larger than that of a SEP IRA. 
  • You can borrow from your Edward Jones Owner K® account.*
  • Your spouse can also contribute if working for your business.

Contribution features

  • For 2016, you can generally contribute elective deferrals up to 100% of compensation up to $18,000, or $24,000 if age 50 or over and employer non-elective contributions up to 25% of compensation as defined by the plan. Total contributions to a participant's account (not including catch-up contributions) cannot exceed $53,000. 
  • Instead of a pretax contribution, you may contribute all or part of your salary deferral amount as an after-tax Roth contribution (up to $18,000). Contributions (except Roth contributions) are tax-deductible, and earnings can grow tax deferred.

Deadlines

You must establish the plan by the last day of your business tax year, but no later than Dec. 31 of the year for which contributions will be made.

How we can help

If you're self-employed and looking to set aside a significant amount of your income, talk to your financial advisor about the Edward Jones Owner K® plan. Regardless of the plan you choose, together you'll set goals and create a strategy to help you reach them.

Important Information:

1All loans must comply with all applicable tax laws. Participants should consult with their tax advisor regarding their situation. Loans taken from a plan may be treated as a taxable distribution and may result in early distribution penalties. Please refer to your individual plan document for more information on optional plan loans.

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