- Low cost; easy set-up and maintenance
- Flexible contributions that are a tax deductible expense
- No annual IRS filings
- Employer: Discretionary, up to 25% of compensation up to $54,000*; whichever is less, always 100% vested
- Employee: Not allowed
*Limits listed are for 2017. The IRS sets limits annually.
Deadline to establish
Employer's tax deadline plus any extensions
- Employers of any business type or size
- Self-employed individuals who are considered both an employer and employee
Participant Custodial Fees
Waived if investments total $10,000 or more; $15 annual per fund if less than $10,000
Support & Guidance
- Wide range of no-load mutual funds available
- One-on-one guidance, plus education and tools to help you and your employees plan for retirement
- Easy online access to track investments and make changes
1 Contributions may only be based on the first $270,000 of compensation, as adjusted.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
Diversification does not assure a profit nor does it protect against loss of principal.