SunAmerica Individual(k)

A multi-managed retirement plan for sole proprietors and other small businesses.

The Tax Relief Act of 2001 enhanced many tax advantaged retirement products to help you bolster your retirement savings. Expanded contribution limits, increased rollover flexibility and catch-up provisions are only some of the benefits Congress enacted. In fact, this landmark legislation created an entirely new retirement option specifically for owner-only businesses.

SunAmerica's Individual 401(k) is a multi-manager retirement plan that capitalizes on the new tax code changes to help you secure a better retirement.

At SunAmerica, we strongly believe that giving our clients access to some of the best minds on Wall Street is one of the best ways to grow retirement wealth while limiting downside risk.

The SunAmerica Individual 401(k) may be right for you if you are:

  • An unincorporated sole proprietor OR a C corporation, S corporation, or a limited partnership.
  • A professional such as a lawyer, consultant, CPA, medical professional, designer, contractor, real estate broker or freelancer.

NOTE: You are not eligible for the SunAmerica Individual 401(k) if your business has employees over the age of 21 or employees that work more than 1,000 hours annually.

Why an Individual 401(k)?

  • More powerful tax incentives. Each year, you can set aside a tax deductible profit-sharing contribution of up to 25% of income, PLUS up to $18,000 in salary deferral ($24,000 for those over age 50). To determine your specific contribution limits, simply refer to the 401(k) calculator.
  • Substantially higher contribution limits
    Maximum Tax Deductible Individual 401(k) for 2015
      Income of $50,000 Income of $100,000
    Simple IRA $13,385 $15,271
     
    SEP IRA $9,294 $18,587
     
    Profit Sharing/Money
    Purchase Plan
    $9,294 $18,587
     
    Individual 401(k) $27,294 $36,587
     
      ($9,294 plus $18,000
    in salary deferrals)
    ($18,587 plus $18,000
    in salary deferrals)

    And you can contribute an additional $6,000 per year in salary deferrals if you are over the age of 50!

    Assumes unincorporated businesses; Income represents reported profits on IRS Form 1040 Schedule C; or IRS Form 1065, Schedule K-1. Maximum profit sharing contributions are based on 25% net profits (Income minus one-half of the Self Employment Tax).

  • Account consolidation. Virtually all exiting retirement plans can be converted to the SunAmerica Individual 401(k), including SEP-IRAs, Keoghs, Profit Sharing and Money Purchase plans, SIMPLE IRAs, Traditional IRA, 457(b)s and 403(b)s.
  • Simplified plan administration. Establishing and maintaining a plan is easy! The IRS does not require annual Form 5500-EZ reporting of plans below $250,000 in assets, nor does it require discrimination testing of plans of any size.
  • Spousal salary deferral. Your spouse can be added to payroll, so your family can benefit from an additional $18,000 of allowable contributions.
  • Loan Provisions. Up to 50% of plan assets or $50,000 can be borrowed from the plan, tax-and penalty-free.1
  • Extremely flexible annual funding. Contributions are discretionary and can vary year-to-year.
  • Immediate, 100% vesting.

1 Minimum loan amount: $1,000

Why SunAmerica Individual 401(k)?

A world-class multi-managed investment platform, including the innovative SunAmerica Focused Portfolios. Our subadvisers include Janus Funds,  BlackRock, Kinetics Asset Management  and many others!

Focused Portfolios are less diversified than the typical mutual fund, therefore the performance of each holding has a greater impact upon the overall portfolio, which increases risk.

Affordable Fees!

One time set-up fee: $35
Annual fee: $75
Per loan fee: $50
Plan termination fee: $35

Individual (k) calculator

Use the helpful slide calculator to your right, to gain a better understanding of what an Individual (k) plan can do for you.

Step 1

Estimate your Net Profit from business (IRS Form 1040, Schedule C if you're a partner in partnership).*

 

Step 2

Compare the estimated maximum Individual (k) plan contribution you can make to some of the other most common types of business retirement plans.

 

 * Allowable contribution based on corporate W-2 will differ.

Frequently Asked Questions

Can I establish and Individual(k) plan if my business has employees?

The Individual(k) plan is designed explicitly for businesses that either do not employ any common law employees or employ only common-law employees that may be disregarded for purposes of federal qualified plan coverage requirements.

Do I qualify for an Individual(k) plan if my business is incorporated?

An Individual(k) plan can be established by both incorporated and non-incorporated businesses (including sole proprietorships, partnerships, and corporations.) If your business is incorporated, you must draw a salary or wage (i.e., W-2 income) to be eligible for an Individual(k) plan.

Are there special requirements if I have ownership in more than one business?

If you have ownership in more than one business, you may have to include all businesses under one business retirement plan (depending on whether the businesses constitute a "controlled group" as defined in the Internal Revenue Code under section 414). If one business within the "controlled group" has benefit-eligible employees, this restriction may prevent you from using the Individual(k) for any of your income.

What is the deadline for establishing and funding an Individual(k) plan?

The deadline for establishing an Individual(k) plan is the last day of your business' tax year. Generally, the deadline for funding an Individual(k) plan is your business tax return due date, including extensions. With regards to the portion of your contribution that is to be considered a salary deferral contribution, you must make a written salary deferral election prior to the time you are deemed to be in receipt of your compensation (generally, for unincorporated business owners, this is the last day of your business tax year).

PLEASE NOTE: SunAmerica does not provide tax advice. Please consult your tax adviser.

Net Profit
Individual (k)
Simple IRA
SEP IRA
Profit Sharing
Money Purchase