Owner-only 401(k) plan
You may be a one-person business, but you can save for retirement like a large company. The Edward Jones Owner K plan is designed to maximize allowable contributions.
You may be a one-person business, but that doesn't mean you can't save for retirement like others at large companies. The Edward Jones Owner K® is an owner-only 401(k) plan, designed for business owners — with no employees other than their spouses — who want to increase or maximize tax-advantaged 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 Edward Jones Owner K® account.1
- Your spouse also may contribute if working for your business.
Owner-only 401(k) contribution features
You can defer up to 100% of compensation or the applicable limit below:
2025 | 2024 | |
|---|---|---|
| If you’re 49 or younger | $23,500 | $23,000 |
| If you’re 50 or older | $31,000 | $30,500 |
| If you're 60-632 | $34,750 | N/A |
Your business can also make contributions of up to 25% of total compensation (as defined by the plan), which are a deductible business expense.
Total employee and employer contributions cannot exceed the applicable limit below:
2025 | 2024 | |
|---|---|---|
| If you’re 49 or younger | $70,000 | $69,000 |
| If you’re 50 or older | $77,500 | $76,500 |
| If you're 60–632 | $81,250 | N/A |
Contributions can be made on a traditional or Roth basis. Traditional contributions are made with pretax dollars, any earnings growth is tax-deferred, and future withdrawals are taxed like income. Roth contributions are made with after-tax dollars, and future, qualified withdrawals are tax-free.
Owner-only 401(k) deadlines
You must establish the plan no later than your business's tax-filing deadline, including extensions.
How we can help
An Edward Jones financial advisor can help you choose a retirement plan that fits your small business needs. Contact us to request a complimentary, no-obligation consultation.
Important Information:
1 Plans looking to add loan provisions must use a custom plan document from a third-party administrator. The Edward Jones plan document does not allow for loan provisions. All loans must comply with all applicable tax laws. Participants should consult with their tax advisor regarding their situation. Loans taken from a plan may be treated as a taxable distribution and may result in early distribution penalties. Please refer to your individual plan document for more information on optional plan loans.
2 Participants between the ages of 60 and 63 are allowed additional catch-up contributions up to $11,250, beginning 2025.
This information is for educational purposes only and has been prepared from sources believe to be reliable, but we make no guarantee to its accuracy or completeness. Edward Jones, its employees and financial advisors cannot provide tax or legal advice.