Individual 401(k) Plans

Flexible Contributions and Higher Limits
Individual 401(k) plans offer owner-only or owner and spouse only operated small businesses a flexible way to invest for retirement through:

• Discretionary salary deferral and/or profit sharing contributions
• Salary deferral catch-up contributions (individuals age 50+).

Individual 401(k) plans often allow business owners to make larger contributions than other popular retirement plans. However, the flexible nature of individual 401(k) plans allow business owners to start, stop or alter their salary deferral and/or profit sharing contributions annually.

Who may be a likely candidate for an individual 401(k)?

1. Owner-only or Owner and Spouse only operated businesses.
2. Small business owners looking for a plan that offers higher contribution limits.
3. Small business owners seeking the flexibility to maximize profit sharing contirbutions or to make none at all.
4. Small business owners who would like to have the ability to take tax-free loans.

Advice Focused On You

People's Financial Advisors can help determine which retirement plan is best suited to your small business. Call us at 1-800-392-3009 to schedule an appointment with a Financial Advisor in your area.

Source: The Hartford. "Retirement Plans For Small Businesses."

People's Financial Advisors is a division of People's Securities, Inc. Investments & Insurance are available through People's Securities, Inc. (member FINRA and SIPC), a subsidiary of People's United Bank.