PLAN4ONE
The ShareBuilder PLAN4ONE is designed to make it easy for any owner-only business to save and shelter profits tax-deferred at a higher level than other conventional retirement options. It’s affordably priced and takes just minutes a month to manage.
Save more with less hassle
- Maximize and shelter your savings by contributing up to $49,000 per year (or $54,500 for persons over 50) to your account. (see question 3 below)
- Get started quickly with fast online plan set-up — typically less than 10 minutes.
- Choose when and how much to contribute. You’ll have until your tax deadline to make your final contribution (typically April 15th if on a calendar fiscal year).
Tax advantages lower your costs
- Choose the best way to protect your personal 401k contributions from taxes: tax-deferred and/or after-tax with the Roth 401k option.
- Because you can tax-defer up to $49,000 per year, you may be able to lower your tax bracket to save more.
Details to know
- Designed specifically for owner-only businesses, including multiple-owner companies
- All business types are eligible (in accordance with EGTRRA regulations)
- Access to tax-free loans with interest paid back to yourself in your 401k account
- Make contributions online anytime
- Interfaces with major payroll services and QuickBooks
- Full-service, online access to administer and monitor your plan
- Diverse index-based investment options comprised of Exchange Traded Funds
- Access to an online Investment Center and statements
- Access to tax-free loans
- Allows for account consolidation and rollovers
Q & A
- Q: Is this the right plan for my organization?
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A: The PLAN4ONE is designed specifically for businesses which do not employ any common law employees, or employ only persons who may be disregarded for purposes of federal qualified plan coverage requirements. Generally, any business or enterprise that employs only the owner(s) and/or spouse(s) of the owner(s) can use the PLAN4ONE. This includes corporations, S-corporations, partnerships, sole proprietorships, and limited liability companies.
- Q: What types of employees can be excluded from the PLAN4ONE?
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A: Generally under federal law you may exclude the following types of employees from coverage under a 401k plan:
- Employees under age 21
- Employees with less than one year of service
- Employees who work less than 1,000 hours per year
- Certain union employees
- Certain nonresident alien employees
- Q: What are the contribution limits?
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A: The annual contribution limit is $49,000. Persons over 50 may contribute up to $54,500. You may contribute up to $16,500 ($22,000 if over 50) as an employee of your business, and profit-share an additional $32,500 as the employer (limited to 25% of W-2 compensation).1
- Q: What is the deadline for funding a PLAN4ONE?
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A: For profit-sharing contributions, you have until the tax deadline date of your fiscal year. So for a 2008 calendar year 401k plan, you will have until April 15, 2010 (March 15th if an S-corporation). The deadline for making a personal contribution of up to $16,500 is the last business day prior to the end of your fiscal business year (e.g. December 31, 2009).
- Q: What if I have ownership in more than one business?
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A: Businesses with common ownership which constitute a “controlled group” under section 414 of the Internal Revenue Code may be required to be included in the plan.
- Q: Are rollover contributions allowed?
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A: Yes, rollovers and transfers are allowed from most other tax-deferred retirement plans, including: Keoghs, defined benefit plans, deductible and conduit IRAs, SEPs, 401ks, profit-sharing and money-purchase plans, SIMPLE IRAs (after two years of SIMPLE participation), and 403b and governmental 457 plans.
- Q: Can personal loans be taken against the PLAN4ONE?
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A: Yes, incorporated and unincorporated business owners are eligible to take personal loans from qualified plans.
1 2008 limits. Limits are indexed annually.