The company said in a news release said the new offering permits self-employed individuals and small-business owners with no employees other than a spouse to save more for retirement than they could with other types of retirement plans (See Black Box: Solo “Flight” ).
The deadline for establishing an Individual 401(k) Plan for 2004 is December 31, according to the announcement.
T. Rowe Price charges no set-up fees for its Individual 401(k) Plan and offers more than 65 no-load mutual funds for retirement investing. A $10 annual per mutual fund administration fee is waived for account balances greater than $5,000 per mutual fund, $50,000 per shareholder, or $100,000 per household, according to the announcement.
“With its higher contribution limits and the benefits of tax-deferred growth, an Individual 401(k) Plan can help self-employed individuals and small-business owners take a big step toward preparing for a financially secure retirement, while also reducing current taxable income,” said Douglas Harrison, Vice President and head of the Tax-Deferred Products Development and Management Group at T. Rowe Price, in the news release. “When we looked at our existing small- business plan customers, we found that approximately one-third could benefit from the higher contribution limits associated with an Individual 401(k) Plan.”
An Individual 401(k) Plan kit is available at http://www.troweprice.com/smallbusiness or by calling a T. Rowe Price Retirement Specialist at 800-638-3804.