Individual-401(k)

Type of Business

¨Business that employ only owners and spouses

Features and Advantages

¨Contributions are discretionary

¨Contributions are tax-deductible by business

¨Employee controls investments

Administration

No testing, 5500 Reporting

Establishment

Business tax year-end

Eligibility

Full time employees

Vesting

100% Immediate

Annual Compensation Limit

$200,000

Maximum Employee Contributions

Salary deferral up to $11,000

Maximum Employer Contributions

¨     Employer Contributions up to 25% compensation or $40,000

Mandatory Minimum Distributions

¨     Begin by age 70 ½

¨     Taxed as ordinary income

Distributions Before Age 59 1/2

10 % penalty in addition to ordinary

Distributions After Age 59 1/2

¨     Subject to ordinary                                                                                                 income taxes

Loans

Permitted