See all Merrill Small Business 401(k) FAQs
Corporations, partnerships and nonprofit organizations can establish Merrill Small Business 401(k) plans. If you’re self-employed or a sole proprietorship, you may want to consider an Individual 401(k).
Employer contributions are deductible by the business. Participant pre-tax contributions and earnings aren’t taxed until they’re withdrawn. For more information, read the Merrill guide to tax benefits (PDF).
- Employers may match employee salary deferrals
- Employers may make a profit-sharing contribution for each eligible employee of up to the lesser of 25% of compensation or $58,000 for 2021 ($57,000 for 2020)
- The maximum compensation on which contributions can be based is $290,000 for 2021 ($285,000 for 2020)
- Employees may contribute up to $19,500 ($26,000 for those age 50 and older)
- The maximum combined employer and employee contribution is the lesser of 100% of compensation or $58,000 for 2021 (for those age 50 and older, $64,500) per participating employee