Features

Receive business and personal tax breaks

Contributions you make as the business owner are generally tax deductible by your business. You may also contribute as an employee, reducing your personal taxes. Total contribution limits, as an employee and employer, are nearly 10 times higher than a Traditional IRA.

Get advice and guidance

Funds and model portfolios — selected and managed by Morningstar Investment Management LLC — help take the guesswork out of investing. You also have access to educational call-center support from Plan Administrators, Inc. (PAi) and a suite of online investor‑education resources.Footnotes 1, 3

Contribute as your cash flow allows

With an Individual (or solo) 401(k), you decide how much to contribute, and you can choose to contribute as your cash flow allows. You can also make contributions whether or not you have a profit.

Understand your retirement journey

PAi's CoPilot includes Years of Retirement that helps you understand how many years you can afford to be retired.

Access your money when you need it

Loans and withdrawals are available if you choose these features in your plan. Always be sure to understand the tax implications before taking a loan.Footnote 2

Stay updated with Alerts

PAi's CoPilot offers proactive, relevant messaging that encourages you to participate in your retirement experience.
Important 2019 plan establishment deadlines
All other 401(k) plans: 12/26/2019
Interested in learning more? Read the Individual 401(k) fact sheet (PDF)

Contribution limits nearly 10x a Traditional IRA

Contribution
limits nearly
10x
a Traditional IRA

Pricing and fees

Pricing and fees

Straightforward, low-cost pricing for your businessFootnote 4

One-time setup fee*:
$100
Monthly administration:
$20 or $25Footnote †
* Setup fee is non-refundable
Footnote † Businesses with less than $250,000 in plan assets will pay $20. Businesses with more than $250,000 in plan assets will pay $25.

Fees paid by each individual participating in the planFootnote 5

Monthly recordkeeping feesFootnote 1:
$3
Annual asset-based costsFootnotes ††:
0.52%
Footnotes †† For investment fiduciary services (0.07%); participant servicing through the call center (0.20%); and account services for the ongoing product management, vendor oversight, trading and custodial services (0.25%)Footnotes 1, 3
Fees example: Molly has $10,000 in her account. This year, she will have approximately $52 withheld to cover the asset-based fee and $36 ($3 x 12 months) withheld for recordkeeping fees.

How to open a 401(k)

How to open a 401(k)

Answer a few questions
Tell us about yourself and your business, and we'll customize a plan to fit your needs.
Review your proposal
You can modify the features, if you wish, before purchasing.
Purchase your plan
After reviewing your proposal, you can purchase your plan online in just a few minutes.
Request a 401(k) proposal Request a 401(k) proposal
Receive a custom proposal online in as little as 5 minutes. Need help? Step-by-step guidance is available by phone from a PAiFootnote 1 401(k) Consultant.

FAQs

FAQs

Can I start a 401(k) if I'm self employed without employees?
Yes, you can. An Individual 401(k) is designed for a business owner without W-2 employees and, if married, the owner's spouse. Learn more about retirement plans for 1099 contractors.
How much can I contribute annually?
You can make contributions as an employee, through salary deferrals, and also as an employer, through contributions made by your business. As an employee, you can contribute up to $19,000 or $25,000 if you're 50 and older (limits for 2018 are $18,500 and $24,500). The employer contribution may not exceed 25% of the employee's compensation (20% of self-employed net earnings). The maximum combined total annual contribution is $56,000 ($55,000 for 2018), which includes the employee and employer contributions.Footnote 6
What are the potential tax benefits?
Employer contributions and plan expenses are generally tax deductible for the business. Pre-tax salary contributions and any earnings are not taxed until withdrawn, and Roth (post-tax) contributions may be withdrawn tax free after age 59½.
Can I withdraw funds or take a loan from my Individual 401(k) account?
Yes. Loans and withdrawals are available if you choose these features in your plan, though you may incur tax penalties and/or fees. For more information, read "Know the facts about loans and withdrawals" (PDF).Footnote 2
See all Individual 401(k) FAQs

More about small business retirement plans

Self employed

SEP IRA
Compare self-employed plans

Employer

Small Business 401(k)
SEP IRA
SIMPLE IRA
Let us help you find your best retirement options

More about small business retirement plans

Self employed

SEP IRA
Compare self-employed plans

Employer

Small Business 401(k)
SEP IRA
SIMPLE IRA
Let us help you find your best retirement options

Need help setting up your plan?

Call 866.890.4177866.890.4177
Mon-Fri 8 a.m. - 5 p.m. CT to speak with a PAiFootnote 1 401(k) Consultant
Find a local
Financial Solutions
Advisor

Important disclosures

Footnote 1 Plan- and participant-level administrative and recordkeeping services for Merrill Edge Individual 401(k)s are provided by Plan Administrators, Inc. (PAi). Investment advisory and fiduciary services are provided by Morningstar Investment Management LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Morningstar Investment Management LLC is a provider of investment management solutions, including investment advisory and retirement plan services. Educational call center support will be provided by PAi. Bank of America Corporation, PAi and Morningstar Investment Management LLC are not affiliated.
Footnote 2 Please consider the advantages and disadvantages of taking a loan before initiating one.
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 Lynch 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 Fees will be deducted from the business account.
Footnote 5 Fees will be deducted from each participant's account.
Footnote 
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.
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Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets.
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