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Individual 401(k) at Merrill

An Individual 401(k) is a flexible plan offering the potential for tax-deferred growth and high contribution limits to self-employed people and owner-only businesses.
Learn more about Individual 401(k)s

SEP IRA at Merrill

A Simplified Employee Pension Plan (SEP) IRA is a flexible retirement plan offering the potential for tax-deferred growth to business owners and their employees as well as self-employed people.
Learn more about SEP IRAs

SIMPLE IRA  at Merrill

A Savings Incentive Match Plan for Employees (SIMPLE) IRA is a plan for businesses with 100 or fewer employees. You make contributions for your employees, who can also contribute through salary deferrals.
Learn more about SIMPLE IRAs

Small Business 401(k)  at Merrill

A Small Business 401(k) is a streamlined and affordable retirement plan designed with small business owners and their employees in mind.
Learn more about Small Business 401(k)s

What plan fits my business?

What plan fits my business?

Individual 401(k)

Reduce your personal and business taxes while having access to your money through loansFootnote 2 with this affordable plan for self-employed business owners and their spouses.
What plan fits my business?

SEP IRA

Benefit from the flexibility to contribute as your cash flow allows, while offering employees the potential for tax deferred growth and contribution limits nearly 10 times higher than a traditional IRA.
What plan fits my business?

SIMPLE IRA

Have 100 or fewer employees and predictable cash flow? Take advantage of easy plan-administration, while offering potential tax advantages to your business and employees.
What plan fits my business?

Small Business 401(k)

Attract and retain talented employees by offering an affordable, easy-to-manage 401(k) — designed for the needs of small businesses.

ContributionsFootnote 4

Contributions

Individual 401(k)

Employer contributions are generally tax deductible by business. If this is a new 401(k) plan and you have 100 or fewer employees, you may also benefit from a tax credit of up to $5000 for the first 3 years.Footnote 1 For the first 5 years, you may also benefit from an additional tax credit for making certain employer contributions, subject to certain limits and phase out over the 5-year period.Footnote 5
Plan expenses are generally tax deductible by business.
Employer contributions are flexible.
Business owners can also contribute as employees.
A Roth (after-tax salary deferrals) option is available for employee contributions.
Loans and withdrawals are available if you choose these features in your plan. Participants may incur additional taxes if certain conditions aren't met.Footnote 2
Contributions

SEP IRA

Employer contributions are generally tax deductible by business. Merrill does not charge setup or administrative fees for SEP IRAs. If this is a new retirement plan and you have 100 or fewer employees, you may also benefit from a tax credit of up to $5000 for the first 3 years.Footnote 1 For the first 5 years, you may also benefit from an additional tax credit for making certain employer contributions, subject to certain limits and phase out over the 5-year period.Footnote 5
Plan expenses are generally tax deductible by business.
Employers have the flexibility to decide whether or not to contribute in any given year as well as contribution amount.
Business owners can not contribute as employees. Contributions are made only by the business.
Employees cannot contribute.
Employers may offer their employees the ability to make Roth contributions. Currently, Merrill is not offering this SEP Roth IRA option. Note: Roth contributions may be available in a 401(k) plan.
Loans are not available. Withdrawals taken before age 59½ — with certain exceptions — are subject to an additional 10% early withdrawal tax.
Contributions

SIMPLE IRA

Employer contributions are generally tax deductible by business. If this is a new retirement plan, you may also benefit from a tax credit of up to $5000 for the first 3 years. For the first 5 years, you may also benefit from an additional tax credit for making certain employer contributions, subject to certain limits and phase out over the 5-year period.
Plan expenses are generally tax deductible by business.
Employer contributions are mandatory. The employer may choose to match or make a non-elective contribution.
Employees can contribute.
Employers may offer their employees the ability to make Roth contributions. Currently, Merrill is not offering this SIMPLE Roth IRA option. Note: Roth contributions may be available in a 401(k) plan.
Loans are not available.
Withdrawals taken before age 59½ — with certain exceptions — are subject to an additional 10% early withdrawal tax (increased to 25% if withdrawn within the first 2 years of contributing to the plan).
Contributions

Small Business 401(k)

Employer contributions are generally tax deductible by business. If this is a new 401(k) plan and you have 100 or fewer employees, you may also benefit from a tax credit of up to $5000 for the first 3 years.Footnote 1 For the first 5 years, you may also benefit from an additional tax credit for making certain employer contributions, subject to certain limits and phase out over the 5-year period.
Plan expenses are generally tax deductible by business.
Employer contributions are flexible.
Employees can contribute.
A Roth (after-tax salary deferrals) option is available for employee contributions.
Loans and withdrawals are available if you choose these features in your plan. Participants may incur additional taxes if certain conditions aren't met.Footnote 2

Investment Choices

Investment Choices

Individual 401(k)

Funds and model portfolios — selected and managed by Morningstar Investment Management LLC — help take the guesswork out of investing.Footnote 3
Investment Choices

SEP IRA

You and your employees can access a full range of investment choices, including stocks, bonds, options, ETFs and well-known mutual funds.
Investment Choices

SIMPLE IRA

You and your employees can access a full range of investment choices, including stocks, bonds, options, ETFs and well-known mutual funds.
Investment Choices

Small Business 401(k)

Funds and model portfolios — selected and managed by Morningstar Investment Management LLC — help take the guesswork out of investing.Footnote 3

Filing Requirements

Individual 401(k)

IRS filing is required only when plan assets are greater than $250,000. When that threshold is met, a signature-ready Form 5500 will be prepared for employer review, at no additional cost.
Filing Requirements

SEP IRA

No. IRS reporting is not required, but notification of employer contributions must be made to employees annually.
Filing Requirements

SIMPLE IRA

No. IRS reporting is not required, but notification of employer contributions must be made to employees annually.
Filing Requirements

Small Business 401(k)

Employers with eligible W-2 employees are generally required to file IRS Form 5500 annually. Businesses with no eligible W-2 employees are required to file only when plan assets are greater than $250,000. A signature-ready Form 5500 will be prepared for employer review, at no additional cost.

Contribution Limits

Contribution Limits

Individual 401(k)

Under age 50
The maximum combined business and employee annual contribution is the lesser of 100% of compensation or $70,000 in 2025 per participating employee.
50 or over
For employees age 50 and older who are eligible to make catch-up contributions, the maximum combined business and employee annual contribution is the lesser of 100% of compensation or $77,500 in 2025 per participating employee.
Effective January 1, 2025, catch-up contributions are increased to $11,250 for individuals who attain age 60, 61, 62 or 63 in 2025. In the year in which an individual attains age 64 or greater, the regular catch-up contribution limit applies.
Contribution Limits

SEP IRA

Under age 50
For all participating employees, employer contributions are limited to the lesser of $70,000 in 2025 or 25% of eligible compensation (20% of self-employed net earnings).
50 or over
For all participating employees, employer contributions are limited to the lesser of $70,000 in 2025 or 25% of eligible compensation (20% of self-employed net earnings). Catch-up contributions are not permitted.
Contribution Limits

SIMPLE IRA

Under age 50
For employees under age 50, including business owners, the employees can defer up to $16,000 of salary in 2025. Businesses must contribute between 2% (minimum) to the lesser of 10% or $5000 (indexed for inflation) for each eligible employee regardless of participation to all eligible participants, or a dollar-for-dollar match of employee contributions up to 3% of compensation. If needed, the cap may be reduced as low as 1% for any 2 years during a 5-year period. Combined employee and employer contributions cannot exceed $33,000 in 2025.
50 or over
Employees age 50 and older, who are eligible to make catch-up contributions, including business owners, can defer up to $20,000 of salary in 2025. Businesses must contribute between 2% (minimum) to the lesser of 10% or $5000 (indexed for inflation) for each eligible employee regardless of participation to all eligible participants, or a dollar-for-dollar match of employee contributions up to 3% of compensation. If needed, the cap may be reduced as low as 1% for any 2 years during a 5-year period. Combined employee and employer contributions cannot exceed $40,000 in 2025.
Contribution Limits

Small Business 401(k)

Under age 50
The maximum combined business and employee annual contribution is the lesser of 100% of compensation or $69,000 in 2025 per participating employee.
50 or over
For employees age 50 and older who are eligible to make catch-up contributions, the maximum combined business and employee annual contribution is the lesser of 100% of compensation or $77,500 in 2025 per participating employee.
Effective January 1, 2025, catch-up contributions are increased to $11,250 for individuals who attain age 60, 61, 62 or 63 in 2025. In the year in which an individual attains age 64 or greater, the regular catch-up contribution limit applies.

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Footnote 1 A recent tax law change enhanced the credit available for small employers with up to 50 employees, which may be able to claim a credit of 100% of the startup costs, up to the maximum of $5,000. For small employers with 51-100 employees, the available credit is only 50% of the startup costs, up to the maximum of $5,000. For more information, visit Retirement Plans Startup Costs Tax Credit on irs.govRetirement Plans Startup Costs Tax Credit on irs.gov.

Footnote 2 Please consider the advantages and disadvantages of taking a loan before initiating one. For more information, read "Know the facts about loans and withdrawals" (PDF).

Footnote 3 Morningstar Investment Management LLC selects the investments and is responsible for the ongoing monitoring and maintenance of the investments and model portfolios. Merrill is responsible for ongoing product management and vendor oversight, as well as trading and custodial services of plan assets and monthly transaction statements.

Footnote 
4 Contribution and compensation limits are subject to a cost-of-living adjustment annually pursuant to the Internal Revenue Code. Contribution and compensation limits for subsequent years may vary.
Footnote 5 The credit is calculated based on the amount of employer contributions you make and the number of employees you have. If you have more than 50 employees during the year, the available credit for that year is reduced by 2% per employee in excess of 50. The maximum amount of the credit per employee is up to $1,000 during the first two years it is received. In years 3 - 5, the credit is phased out, with 75% being available for year 3, 50% being available for year 4, and 25% being available for year 5. Also, the credit is only available for contributions made to employees who make less than $100,000.

MAP8409169-03182027
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Investment products offered through Merrill Lynch, Pierce, Fenner & Smith Incorporated, and insurance and annuity products offered through Merrill Lynch Life Agency Inc.:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
The performance data contained herein represents past performance which does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance information current to the most recent month end, please contact us.

Net Asset Value (NAV) returns are based on the prior-day closing NAV value at 4 p.m. ET. NAV returns assume the reinvestment of all dividend and capital gain distributions at NAV when paid.

Market price returns are based on the prior-day closing market price, which is the average of the midpoint bid-ask prices at 4 p.m. ET. Market price returns do not represent the returns an investor would receive if shares were traded at other times.

Returns include fees and applicable loads. Since Inception returns are provided for funds with less than 10 years of history and are as of the fund's inception date. 10 year returns are provided for funds with greater than 10 years of history.

Before investing consider carefully the investment objectives, risks, and charges and expenses of the fund, including management fees, other expenses and special risks. This and other information may be found in each fund's prospectus or summary prospectus, if available. Always read the prospectus or summary prospectus carefully before you invest or send money. Prospectuses can be obtained by contacting us.

Mutual Funds and Exchange Traded Funds: Expense Ratio – Gross Expense Ratio is the total annual operating expense (before waivers or reimbursements) from the fund's most recent prospectus. You should also review the fund's detailed annual fund operating expenses which are provided in the fund's prospectus.

Closed End Funds: Expense Ratio – Gross Expense Ratio is the ratio of the fund's total annual operating expense (before waivers or reimbursements) to average net assets as of the date of the fund's most recent annual report. You should also review the fund's detailed annual operating expenses disclosed by the fund in its annual reports, semi-annual reports, and other public filings.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory and other services. Additional information is available in our Client Relationship Summary (Form CRS) (PDF).

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp.").
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