2011 SBO 401k Plan™ Features

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 $49,000 maximum annual salary deferral and employer contribution limits under current law for individuals.

• Investment Options
  Unlimited. You choose either Self-Directed (must comply with Section 4975 of IRC Prohibited Transaction Rules) 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
• Consolidated assets from IRAs, other 401k accounts, etc.
• 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). 
• Eligibility
  Age 21, no service requirement, immediate entry
• Plan Establishment Deadline
  Company tax year end.
• Salary Contributions
  Up to $16,500 (not to exceed 100% of compensation, $245,000 compensation limit for 2011)
• Catch-Up Contributions
  Participants age 50 or older may contribute an additional $5,500 in salary deferrals beyond the $16,500, which does not count towards the overall contribution limit of $49,000.
• Employer Contributions
  Up to 25% of compensation (earned income for self-employed, $245,000 compensation limit for 2011) or maximum $49,000 (total of salary deferral and employer contributions).
• Rollovers
  Rollovers are allowed from SEP, profit sharing, defined benefit, 401(k), 403(b), governmental 457 plans, and traditional IRAs and SIMPLE IRAs (SIMPLE IRA rollover eligible after two-year holding period is met.)
• Loans and Withdrawals
  Loans are available (subject to IRS guidelines) to all participants, including unincorporated business owners. Withdrawals are limited to distributable events such as retirement, death or disability.