According to a press release, setting up a savings program using Individual(k) means the firms can set aside up to a quarter of income as a tax-deductible employer contribution and another $11,000 as a pretax salary deferral contribution, up to $40,000 this year. EGTRRA liberalized the plan savings limits.
Individual(k) has no minimum balance requirement and business owners can choose to invest in more than 500 different mutual funds, according to Chris Dyer, Managing Director, Victory Capital Management
The company said Individual(k) participants could roll over assets from a previous employer and then take out plan loans against their total account balance.
According to Victory, companies qualifying for its product are proprietorships that do not have permanent full-time employees other than family members. Also qualifying are partnerships, including LLCs, and corporations, including both Subchapter S and C corporations.
The ideal candidates for Individual(k) plans are independently practicing attorneys, realtors, accountants, physicians, consultants, and independent contractors, the company said.
Victory Capital Management is a subsidiary of KeyCorp, a Cleveland, Ohio banking company.
The Individual(k) plan is available by calling Key’s
Retirement Center at 1-888-KEY-2020.