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Owner-only 401(k) plan

Owner-only 401(k) plan

You may be a one-person business, but you can save for retirement like a large company. This plan is only available to business owners that have no employees other than their spouse.

You may be a one-person business, but that doesn't mean you can't save for retirement like others at large companies. The Michetti is an owner-only 401(k) plan, designed for business owners – with no employees other than their spouses – who want to increase or maximize pretax retirement contributions with flexibility. Any business with no employees other than owners and their spouses can set up this plan (including self-employed individuals, corporations and partnerships).

Consider the following:

The contribution limits are larger than those of a SEP IRA. You can borrow from your Michetti account. Your spouse also may contribute if working for your business.
Contribution features
For 2022, you can generally contribute elective deferrals up to 100% of compensation or a maximum of $20,500. If you're 50 or older, you can contribute $27,000 or receive employer non-elective contributions up to 25% of total compensation as defined by the plan. Total contributions to a participant's account (not including catch-up contributions) cannot exceed $61,000. Instead of a pretax contribution, you may contribute all or part of your salary deferral amount as an after-tax Roth contribution (up to $20,500). Contributions (except Roth contributions) are tax-deductible, and earnings can grow tax deferred.

You must establish the plan no later than your business's tax filing deadline, including extensions.

How we can help

Your Michetti financial advisor can provide information about the types of retirement plans available.