Individual 401(k)
Retirement plan for self-employed or small businesses with one spouse employee
What Is an Individual 401(k)?
Individual 401(k) plans offer your business tax-deferred retirement savings and tax advantages.
What Are the Benefits?
Larger contribution limits compared to other plans
Contributions are a tax-deductible business expense
Owner contributes as employer and employee, benefiting from both
What Type of Employer Can Open This Plan?
• Self-employed individuals or business owners with only a spouse employee.
Who Contributes to the Plan?
• Employers
Employers* can make discretionary contributions up to 25% of an employee’s compensation or $69,000** (whichever is less).¹
• Employees
Employees can make after-tax Roth or pretax contributions up to $23,000.*
Those age 50+ can make an additional $7,500 in catch-up contributions if the plan allows.
What Investment Options Are Available?
You choose which funds are available for you and your employees from a variety of mutual funds. Or consider a pre-diversified portfolio built by our professionals. It's a convenient way to choose based on when you'll need the money or the risk level that fits your goal. And it takes the guesswork out of picking investments.
What Are the Other Plan Benefits?
Retirement education and tools to help you and your employees plan for retirement, or one-on-one guidance from a consultant upon request.
Convenient services based on how you want to work with us, including online access to track investments and make changes.
Secure Plan Sponsor Access online tool for convenient plan management.
Distribution services available for tax reporting.
Review Other Options
Compare plans and benefits to find the one that best fits your business.
Things to Know Before You Get Started
Individual 401(k) Plans
With American Century Investments
Products and services to fit your needs, plus the ability to invest in others.
Get Support and Guidance
Education and tools—plus guidance upon request—can help you and any employees plan for retirement. It starts with helping you choose the right plan.
Find Investment Opportunities
You and your employees can build a diversified portfolio that aligns with your risk comfort level, time horizon and retirement goals.
Make an Impact
When you invest with us, you can also invest in the future of others. Together we can become a powerful force for good.
Establish the Plan
Questions?
Call to speak to a Business & Retirement Specialist who can help you select a plan for your business.
Limits listed are for 2024. The IRS sets limits annually.
Contributions may only be based on the first $345,000 of compensation as adjusted.
Additional employer responsibilities apply.
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
IRA investment earnings are not taxed. Depending on the type of IRA and certain other factors, these earnings, as well as the original contributions, may be taxed at your ordinary income tax rate upon withdrawal. A 10% penalty may be imposed for early withdrawal before age 59½.
Diversification does not assure a profit nor does it protect against loss of principal.