Individual 401(k) Plans

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INDIVIDUAL 401(k)

Who’s Eligible?

Sole Proprietorships
Partnerships
Corporations

Key Benefits:

Higher contribution limits (2004)

Maximums: $41,000, $43,000 for age 50 and older

Loan provisions

Participants can’t borrow from a SIMPLE or SEP IRA. With the Individual 401(k) Plan, they can take a loan of up to 50% of plan assets or $50,000, without any IRS penalties or taxes.

� Rollover Capability & Online Transactions

Most forms of retirement plans are eligible to rollover into the Individual 401(k) Plan, including SIMPLE IRAs, SEP IRAs, Profit Sharing and Money Purchase plans, Traditional and ROTH IRAs; and most forms of 457 and 403(b) plans.

� Online Access and Transactions

A simple, online record keeping system lets the Individual 401(k) Plan offer information and transaction capability 24 hours a day, helps eliminate errors, and offers unparalleled flexibility to owner-only businesses.

CONTRIBUTION COMPARISON

Maximum total contributions allowed, based on business net profits of:	SIMPLE IRA	SEP IRA	Profit-sharing Money Purchase Plan	INDIVIDUAL 401(k)
$ 50,000	$ 9,385	$ 9,294	$ 9,294	$21,294
$100,000	$10,771	$18,653	$18,653	$30,653
$150,000	$12,156	$28,519	$28,519	$40,000

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