Retirement plan for self-employed or small businesses with one spouse employee
What Is an Individual 401(k)?
Individual 401(k) plans offer your business tax-deferred retirement savings and tax advantages.
What Are the Benefits?
Larger contribution limits compared to other plans
Contributions are a tax-deductible business expense
Owner contributes as employer and employee, benefiting from both
What Type of Employer Can Open This Plan?
• Self-employed individuals or business owners with only a spouse employee.
Who Contributes to the Plan?
Employers* can make discretionary contributions up to 25% of an employee’s compensation or $69,000** (whichever is less).¹
Employees can make after-tax Roth or pretax contributions up to $23,000.*
Those age 50+ can make an additional $7,500 in catch-up contributions if the plan allows.
What Investment Options Are Available?
You choose which funds are available for you and your employees from a variety of mutual funds. Or consider a pre-diversified portfolio built by our professionals. It's a convenient way to choose based on when you'll need the money or the risk level that fits your goal. And it takes the guesswork out of picking investments.
What Are the Other Plan Benefits?
Retirement education and tools to help you and your employees plan for retirement, or one-on-one guidance from a consultant upon request.
Convenient services based on how you want to work with us, including online access to track investments and make changes.
Secure Plan Sponsor Access online tool for convenient plan management.
Distribution services available for tax reporting.
Review Other Options
Compare plans and benefits to find the one that best fits your business.
Things to Know Before You Get Started
Deadline to Establish
Plan must be established by the employer’s tax-filing deadline, plus extensions.
Complete Summary Plan Description and other plan paperwork.
File annual IRS Form 5500 once plan assets reach $250,000.
Distribute applicable employee notices and disclosures.
Distribute annual 404(a) Participant Disclosures (found under the Meet Employee Disclosure Rules section).
Annual $25 service fee is deducted from participant accounts.
Individual 401(k) Plans
With American Century Investments
Products and services to fit your needs, plus the ability to invest in others.
Get Support and Guidance
Education and tools—plus guidance upon request—can help you and any employees plan for retirement. It starts with helping you choose the right plan.
Find Investment Opportunities
You and your employees can build a diversified portfolio that aligns with your risk comfort level, time horizon and retirement goals.
Make an Impact
When you invest with us, you can also invest in the future of others. Together we can become a powerful force for good.
Establish the Plan
Complete the Plan Paperwork
Please contact us for the correct documents.
Review the Plan Document
Complete the Retirement Plan Services Application to send to us in a later step.
Complete the Adoption Agreement and make a copy. Retain the original for your records and send the copy to us in a later step.
Inform Any Employee (if applicable)
Complete and distribute the Summary Plan Description and Appropriate Notices to any eligible employees.
Instruct employees to complete the Participant Investment Elections and Salary Reduction Agreement forms and return them to you. Retain the originals for your records (and send a copy of the Participant Investment Election form to us).
Instruct employees to designate beneficiaries by completing the beneficiary form and retaining it for your records. Do not return to us.
Send the Documents
Gather the Retirement Plan Services Application, a copy of the Adoption Agreement, and a copy of the Participant Investment Elections form(s) from employee(s).
Mail forms to:
American Century Investments
PO Box 419385
Kansas City, MO 64141-6385
Or FAX to 1-888-327-1997
Limits listed are for 2024. The IRS sets limits annually.
Contributions may only be based on the first $345,000 of compensation as adjusted.
Additional employer responsibilities apply.
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
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.
IRA investment earnings are not taxed. Depending on the type of IRA and certain other factors, these earnings, as well as the original contributions, may be taxed at your ordinary income tax rate upon withdrawal. A 10% penalty may be imposed for early withdrawal before age 59½.
Diversification does not assure a profit nor does it protect against loss of principal.