Individual 401(k) Contribution Comparison Calculator
Self-employed individuals and businesses employing only the owner, partners and spouses have several options for tax-advantaged savings: an Individual 401(k) plan, a SEP IRA, a SIMPLE IRA, or a Profit Sharing plan. Each option has distinct features and amounts that can be contributed to the plan each year. Use the Individual 401(k) Contribution Comparison to estimate the potential contribution that can be made to an Individual 401(k) compared to Profit Sharing, SIMPLE, or SEP plan for 2012.
Definitions
- Business type
- Please select either in sole proprietorship or corporation. The calculations for the owner's contributions are slightly different depending on the business type.
- Net income
- For sole proprietors, this is the net income from tax Schedule C or C-EZ. For single owner corporations with no employees other than the owner or his/her spouse, this is the owner's W-2 wages.
- Current age
- Business owner's current age. For SIMPLE and Individual 401(k) plans, business owners are able to make additional contributions, known as "Catchup Contributions" if the owner is age 50 or older by the end of the year. Individual 401(k) plans allow for an additional $5,500 while SIMPLE IRAs allow for an additional $2,500 contribution.
These calculators are provided only as general self-help tools. Results depend on many factors, including the assumptions you provide. We do not guarantee their accuracy, or applicability to your circumstances.
These tools are not offers, representations or warranties by any member companies of the Principal Financial Group, and do not describe any particular products or services they offer. The specific values shown in these calculations may not be identical to the values of the insurance or financial products described in them and offered by the member companies of the Principal Financial Group®. Any product or service you purchase from a member company of the Principal Financial Group® will be governed exclusively by the terms of the specific agreement for that product or service.
As with any financial transaction, you should carefully review the entire agreement before making a decision. These calculators are not legal, accounting or tax advice by any member company of the Principal Financial Group®. If you have questions on the legal or tax implications of a particular transaction, you should contact your attorney, accountant or tax advisor. These calculators were designed by KJE Computer Solutions, LLC, and the calculations used in these tools are the property of KJE Computer Solutions, LLC.
