Individual 401(k)

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Benefits

  • Larger contribution limits compared to other plans
  • Owner contributes as employer and employee, benefiting from both
  • Contributions are a deductible business expense
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Who Contributes1

As Employer: Discretionary, up to 25% of compensation up to $56,000*, whichever is less

Employee Contributions: Roth or Pre-tax 401(k) up to $19,000*

Employees Age 50+: Additional catch-up contributions up to $6,000 (if plan permits)

* Limits listed are for 2019. The IRS sets limits annually.

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Plan Details

Deadline to establish: Last day of the business's fiscal year, usually December 31

Eligible Employers: Self-employed individuals or business owners with only a spouse employee

Participant Fee: Annual $25 service fee which is deducted from participant accounts

Compare Plans and BenefitsGet the Workplace Guide

Plan Administrator Responsibilities2

  • Complete Summary Plan Description
  • File annual IRS Form 5500 once plan assets reach $250,000
  • Distribute applicable employee notices and disclosures
  • Distribute annual 404(a) Participant Disclosures

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
  • Secure Plan Sponsor Access website for convenient management
  • Distribution services available for tax reporting

Establish Plan Now - Employer Checklist

Complete the steps below to establish your plan. Call 1-800-345-3533 if you have questions or need help.

Step 1: Review the Plan Document. If you need a plan document, please contact us.

Step 2: Review and Complete the Required Paperwork.

Step 3: Instruct Employees to Complete the Participant Investment Elections  form and return their completed form to you. Make a copy for us.

Step 4: Return these forms to us:

  • Copy of Adoption Agreement
  • Participant Investment Elections forms for every employee
  • Retirement Plan Services Application

By Fax: 1-888-327-1997

By Mail:
American Century Investments
PO Box 419385
Kansas City, MO 64141-6385

Step 5: Instruct Employees to designate beneficiaries. Have employees complete beneficiary forms and retain them for your records. Do not return to us.

Step 6: Review Purchase Guidelines and submit contributions.

Complete the Purchase Guidelines  form and submit contributions.

OR

Sign up for Plan Sponsor Access  to submit contributions electronically through our secure website. Contact us at 1-800-345-3533 to get a user name and password.

Have Questions or Need Help?

Call us to speak to a Business & Retirement Specialist.

1-800-345-3533

1 Contributions may only be based on the first $280,000 of compensation as adjusted.
2 Additional employer responsibilities apply.

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.

This information is for educational purposes only and is not intended as a personalized recommendation or fiduciary advice. There are different options available for your retirement plan investments. You should consider all options before making a decision. Our representatives can help you evaluate all of your distribution options.

Diversification does not assure a profit nor does it protect against loss of principal.