See all Merrill Edge® Small Business 401(k) FAQs
Corporations, partnerships and nonprofit organizations can establish Merrill Edge 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 Participant pre-tax contributions and earnings aren’t taxed until they’re withdrawn.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 Edge 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 $54,000 for 2017 ($53,000 for 2016)
- The maximum compensation on which contributions can be based is $270,000 for 2017 ($265,000 for 2016)
- Employees may contribute up to $18,000 ($24,000 for those age 50 and older)
- The maximum combined employer and employee contribution is the lesser of 100% of compensation or $54,000 for 2017 and $53,000 for 2016 (for those age 50 and older, $60,000 for 2017 and $59,000 for 2016) per participating employee