‘Solo’ doesn’t mean you have to go through it alone. Learn about 401(k) retirement options available to you.
While being your own boss has many advantages, your business’ success is based solely on your effort. If your focus is only on growing your business today, who is growing your savings for your future? Investing in your future begins with understanding some of your options and benefits available to you in a retirement plan.
While you may know about traditional 401(k) plans at mid and large size companies, do you know there is an option for self-employed individuals? An EZ-K 401(k) is a low-cost retirement plan designed for businesses with no other employees other than spouses. This type of plan is not subject to 401(k) discrimination testing and has fewer administrative requirements.
BENEFITS OF HAVING AN EZ-K 401(k) FOR YOUR OWNER-ONLY BUSINESS:
LOW COST: Less than those of a standard 401(k); The advisors at M3 Investment Services charge no administrative fees for EZ-K plans aside from standard custodial fees. Other fees may apply.
FLEXIBILITY:Both salary deferrals and profit sharing contributions are discretionary—you do not have to make them each year. All contributions are optional. Compensation is earned income for self-employed individuals.
CONTRIBUTION LIMITS:Larger than most other types of retirement plans.
TAX SAVINGS: Tax-deferred growth and tax-deductible contributions. Withdrawals made prior to age 59 ½, may be subject to tax penalties.
ROLLOVERS: Rollovers from other eligible plans, including traditional IRAs, are accepted.
ROTH CONTRIBUTIONS: Tax-free earnings growth offered for all investors, as well as tax-free distributions for those 59 ½ or older who meet specific criteria.’
LOANS: Loans are available; you may be able to borrow up to one-half of your account balance, but not to exceed $50,000.
VESTING: You are 100% vested immediately.
WITHDRAWALS: Minimum distributions are required for owners 70 ½ or older. Distributions that aren’t qualified Roth distributions are subject to income tax in the year withdrawn and 10% early withdrawal penalty prior to 59 ½.
Enjoy the features of Retirement Solutions
DIVERSIFY YOUR INVESTMENTS*
Solutions can meet your unique needs by offering you choices. Customize your investment portfolio with a menu of over 3,000 investment options from more than 90 fund families.
HELP REDUCE INVESTMENT RISK
You can add Asset Management services to your Solutions account. Choose from several well-known investment strategists and have your account actively managed and automatically rebalanced based on the strategy of your choice.
HELP IS ALWAYS AVAILABLE
You’ll receive ongoing, personalized counseling and objective advice from a M3 Investment Services financial advisor.
EZ-K makes saving simple for self-employed individuals.
Through Lincoln Investment, M3 Investment Services can provide you with a 401(k) plan that is built on our platform.
If you are a business owner, partner, or the spouse of a business owner/partner, utilize EZ-K to help grow your savings.
>> CONTACT AN M3 ADVISOR to discuss an EZ 401(k) plan to see if it is a fit for your situation and goals.
EZ-K is not available for business owners who employ others, including their children. This plan may not be appropriate for owners of multiple businesses that are part of a controlled group or affiliated service group or for owners considering hiring employees. The business owner may contribute to El-K as both employer and employee. If plan assets exceed $250,000, IRS Form 5500-EZ must be filed by you or your accountant. Prior to rolling over assets from on employer-sponsored retirement plan, it’s important that you understand your options and do a full comparison on the differences in the guarantees and protections offered by each respective type of account as well as the differences in liquidity/loans, types of investments, fees and any potential penalties. Withdrawals made prior to age 59 1/2 may be subject to tax penalties.
*Diversification does not guarantee a profit or protect against a loss.