Owner-Only / Self-Employed

Own­er-only and self-employed retire­ment plans – Exclu­sive (k) ®, SEP and SIMPLE IRAs, and defined-ben­e­fit plans — give busi­ness own­ers a tax-advan­taged way to save for retire­ment.

What is an Exclusive (k) ® Plan?

The Exclu­sive (k) ® is a retire­ment sav­ings plan specif­i­cal­ly designed for self-employed busi­ness own­ers with no com­mon-law employ­ees.

Exclusive (k) ® Plan at a Glance

Who May Estab­lish A com­pa­ny who employs only the owner(s) and their spous­es, if applic­a­ble, and have no com­mon-law employ­ees.
Admin­is­tra­tor Test­ing None.
Estab­lish­ment New plans must be estab­lished by the last busi­ness day of the company’s fis­cal year.
Employ­ee Eli­gi­bil­i­ty Require­ments Owner(s) and their spous­es, if the spouse is active­ly employed and receives W-2 income.
Exclud­able Employ­ees Part-time employ­ees (those work­ing less than 1,000 hours per year).
Owner/Spouse Employ­ee Con­tri­bu­tion Lim­it Max­i­mum employ­ee defer­ral is the less­er of 100 per­cent of income or $18,000.
Catch-up Con­tri­bu­tions Up to $6,000 for par­tic­i­pants age 50 or old­er.
Employ­er Con­tri­bu­tions Dis­cre­tionary: Max­i­mum of 20 per­cent of adjust­ed net busi­ness income or 25 per­cent of W-2 com­pen­sa­tion after appli­ca­tion of FICA, not to exceed $53,000 when com­bined with salary defer­ral fea­ture. $59,000 for those age 50 and beyond.
Annu­al Cus­to­di­al Fee $18

Exclusive (k) ® Benefits

  • Gen­er­al­ly no third-par­ty admin­is­tra­tion fees until the assets reach $250,000 or a loan is request­ed.
  • Poten­tial for high­er con­tri­bu­tion lim­its than with a SEP IRA or prof­it shar­ing plan.
  • Employ­ees that work less than 1,000 hours per year can be exclud­ed from the plan.
  • Spous­es who are employed by the com­pa­ny can elect to par­tic­i­pate.
  • Loan fea­ture avail­able.