A Single-Participant 401(k) Profit Sharing Plan is a defined contribution plan established and maintained by an employer. Discretionary contributions are invested into the plan and accumulate tax deferred for the employee's retirement benefit.

Employer Advantages
  • Separate employer website.
  • American Century Investments® offers a prototype plan and updates it when laws change.
  • Can still contribute to an IRA.1
  • Allows larger contribution limits than other retirement plans.
  • Contributions are a deductible business expense.
  • American Century Investments will issue an annual IRS Form 1099-R to any employee who withdraws money from the plan and will report the withdrawal amount to the IRS.
Eligible Employers Any self-employed individual or business owner with no employees other than a spouse.
Annual Contribution Limits
Employer Voluntary-For 2014, up to 25% of compensation or $52,000, whichever is less.2
Employee Roth
or Pre-tax 401(k)
2014 $17,500
Annual "Catch-Up" Contribution Limits for Employees Age 50+ (in addition to annual contribution) 2014 $5,500
Combined Employer and Employee For 2014, 100% of compensation or $52,000, whichever is less (excluding "Catch-Up" contributions).2
Initial Paperwork Adoption Agreement
Annual Paperwork IRS Form 5500
Deadline for Establishing Plan Plan may be established at any point in the year but must be established by the payroll date that employee salary deferrals begin.
Investment Choices Select from a variety of American Century Investments mutual funds based on your risk tolerance and investment objectives.
Annual Fees An annual service fee of $25 per participant applies. The fee is deducted from the participant's accounts on the third Friday of November each year.
Eligibility Requirements Not applicable.
Maximum Vesting Schedule Not applicable.
Withdrawals Employees must meet a qualifying event based on plan provisions.
Secure Online Account Access Participants create a User Name and Password and Log In for secure online account access, to:
  • View account balances
  • Conduct online transactions
  • View tax forms (if available)
  • And more.
Employers can Log In for secure online plan access, to:
  • View plan assets
  • Transmit contributions
  • Add participants
  • Update participant information
  • Request plan reports
  • View participant transaction history

1Contributions may not be deductible depending on your income level.
2For 2014, contributions may only be based on the first $260,000 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 not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.