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To view this information in an easily printable PDF format click here.

What is a Solo Business Owner 401k Plan™?
A retirement plan designed exclusively for Solo Business Owners with no employees other than their spouses.

What is the goal of an SBO 401k Plan™?
To reach the maximum salary deferral and employer contribution limits under current law for individuals: $46,000 for 2008.

SBO 401k Plan™ Features for 2008

Eligible Employers Businesses that employ owners, their spouses, and have no other employees who will be eligible to participate (includes corporations, partnerships, sole proprietors and limited liability companies).
Plan Establishment Deadline Company tax year end.
Eligibility Age 21, no service requirement, immediate entry
Investment Options Unlimited. You choose either Self-Directed* or Professional Management within a single custody account at the financial institution of your choice.
Valuable Features
  • Open investment architecture
  • Loan: 50% of vested balance not to exceed $50,000
  • No discrimination testing
  • Consolidate assets from IRA’S, other 401k’s, etc.
Salary Deferral Contributions Up to $15,500 (not to exceed 100% of compensation) **.
Catch-Up Contributions Participants age 50 or older may contribute an additional $5,000 in salary deferrals beyond the $15,500, which does not count towards the overall contribution limit of $46,000.
Employer Contributions Up to 25% of compensation (earned income for self-employed) ** or maximum $46,000 (total of salary deferral and employer contributions).
Rollovers Rollovers are allowed from traditional IRA’s, SEP, SIMPLE***, profit sharing, defined benefit, 401(k), 403(b) and governmental 457 plans.
Loans Available (subject to IRS guidelines) to all participants, including unincorporated business owners.
Withdrawals Limited to distributable events such as retirement, death or disability.

Set-up Charge:
  • Plan Document and Adoption Agreement $375 (deductible).
  • Postage & Handling at Cost
Annual Maintenance Charge:
  • Plan Maintenance: $250 annually (deductible)
    • Maintain Qualified Status of Plan
    • Annual Accrued Participant Report
Additional Services:
  • Employer Contribution Calculation: $125 annually
  • IRS 5500-EZ preparation: $125 annually
  • Loan fee: $150 per loan set-up; $50 annual maintenance fee
  • Distributions $95
  • Trust reconciliation for multiple accounts; $115 per hour (1 hr. min)
  • $50 charge per participant starting with 3rd life

* Must comply with Section 4975 of IRC (Prohibited Transaction Rules)
**$230,000 compensation limit for 2008.
***SIMPLE IRA rollover eligible after two-year holding period is met.

If you would like to receive more information, contact Julie Martin at 314.983.1298.

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