American Express to Offer 401(k) Plan for Single-Employee Companies

November 4, 2004 ( - Complementing its existing 401(k) plans for mid-size and large companies, American Express Financial Advisors is now offering a 401(k) plan for small business owners without any employees.

The American Express Individual(k) plan will provide an alternative to traditional plans such as SEP plans, the company said in a press release, and will aim to provide more flexibility, added investment choices, and higher contribution limits.

In company’s individual 401(k) plan will allow users to invest up to 25% of their annual income as tax-deductible contributions. Like other 401(k) plans for larger companies, investors will be allowed to invest up to $13,000 annually, with catch-up contributions for workers over the age of 50. In some scenarios, the company said in the press release, the 401(k) plan may allow users to contribute almost double than is allowed in SEP plans.

American Express Financial Advisors is a subsidiary of American Express ( ), which manages over $328 billion in assets.