Individual 401(k) Retirement Plans for Small Business Owners – T. Rowe Price

Save more with an
Individual 401(k) Plan

This 401(k) plan allows one-person business owners (and their working spouse) the opportunity to save even more for their retirement.
Call 1.800.638.3804 to get started.
Individual 401(k) Retirement Plan Individual 401(k) Retirement Plan
Eligible Employer: Self-employed individuals or small business owners (and their working spouse) with no eligible employees.
Employer Deductible Limit: 25% of total compensation* of eligible participants (owner, and if applicable, working spouse).
 
Maximum Contributions for Participants: For 2015 and 2016, the lesser of: $53,000 or 100% of compensation
Salary Deferral Allowed: Yes, may contribute the lesser of:
100% of compensation or $18,000 ($24,000 if age 50 or older) in 2015 and 2016.
Employer Fees: No annual employer fees or set-up costs1
Plan Set-up Deadline: December 31 (by the end of the initial plan year)
Plan Reporting Requirements: Annual IRS Form 5500 filing when combined plan assets exceed $250,000.
Investment Options: Choose from over 90 no-load mutual funds
SIMPLE IRA Plan Benefits

Individual 401(k) Plan Benefits

Significant Tax Savings Potential
  • Contributions to an Individual 401(k) Plan can help reduce your taxable income while saving for retirement.
  • Choice of either pre-tax and/or after-tax (Roth) salary deferral contributions Tax-Deferred Growth Potential and Generous Contribution Limits
  • Generous contributions limits allow you to maximize your retirement plan needs.
  • Age 50 or older and able to make "catch-up" contributions in addition to your salary deferral contributions.
Low Costs
  • No participant fees when you subscribe to paperless delivery.1
  • We keep our mutual fund expenses low to help you save even more.
*Maximum amount of compensation that can be used in determining contribution is $265,000 for tax years 2015 and 2016. This amount is increased periodically for inflation.

1An annual $20 account service fee is charged for each mutual fund account with a balance below $10,000. The $20 account service fee will be waived for the following circumstances: Subscribe to electronic delivery of statements and confirmations; maintain an individual combined balance of $50,000 or more for all T. Rowe Price accounts (including mutual funds, Brokerage, and Small Business Retirement Plans); or qualify for T. Rowe Price Select Client Services based on higher asset levels of $100,000 or more. Participants can subscribe to paperless delivery via the T. Rowe Price website once their account is established. If the Participant Account is closed during the year, a $20 closeout fee will be deducted automatically from the proceeds of the total redemption. However, the closeout fee is waived when an account service fee was previously assessed to the participant account for that year or when the proceeds are being used for a rollover, transfer or conversion to a T. Rowe Price retirement plan account or T. Rowe Price IRA.