One Person 401k Plans for the Self Employed

The annual maximum contribution limit for 2014 is $57,500 which is composed of a $52,000 limit on 20% of self employed income up to $260,000 plus $5,500 for individuals age 50 and over. A one person 401k plan should be considered for the owner of a profitable business (sole proprieitorship) with no employees. Such a plan is not subject to the complicated nondiscrimination rules for 401k plans with employees.