Contributions
How much can you contribute to your Single(k)?
With Single(k), depending on your salary and age, you could contribute $49,000 per year.
Compare the contribution limits against other small business retirement plans, such as a SEP or a Profit-Sharing Plan, where you are limited to contributing 25% of your salary or net profit.
The way Single(k) works is that it combines the amounts you can contribute as an employee with the amounts you can contribute as an employer (profit-sharing).
The contributions are split up into three categories:
EMPLOYEE (also called 401(k): $16,500 (not to exceed income/salary)
EMPLOYER (Profit-Sharing contribution): 25% of gross income from a corporation, or 20% of net earned income for sole proprietors/partners (not to exceed $49,000*)
TOTAL FOR THOSE LESS THAN 50 YEARS OLD: Combined amount cannot exceed $49,000
CATCH-UP CONTRIBUTION (for those more than 50 years old): $5,500
TOTAL FOR THOSE MORE THAN 50 YEARS OLD: $54,500
*Please note that if you decide to take the full $16,500 for the employee deferral, you are limited to taking $32,500 in profit-sharing contributions so that your contributions do not exceed $49,000.
Calculate your maximum contribution
You can use our interactive calculator to calculate your maximum contribution.
All you’ll need to do is enter in your name, age and income – you’ll get a contribution comparison among a Single(k), SIMPLE, SEP or a Defined Benefit plan.