Best proprietor 401(k) plans, or Uni-Ks, create large interest certainly sole proprietors and you can care about-employed anybody such as professionals, accountants, and you may freelancers. Find out how which retirement discounts solution measures up with a september IRA.

Use this pointers which have subscribers which is choosing ranging from a Sep IRA and you will an only owner 401(k) plan, otherwise known as an excellent Uni-K.

Regardless if contribution restrictions getting an excellent Uni-K was possibly more than men and women to possess a september IRA, not every small company owner will benefit from their store.

You can find extra factors that may help determine whether a Uni-K could be useful to own a certain buyer. Here are about three of these:

• What is the buyer’s annual payment? In case your consumer’s yearly money is over $330,000 this year, an excellent Uni-K confers no advantage on a september IRA. Contributions could be around twenty-five% out-of a keen employee’s settlement, provided it doesn’t go beyond maximum share anticipate into the newest income tax season. [Read more…]