|Participants||Sole proprietors or partners who have no|
|Employer contributions||Maximum employer contribution per eligible employee is $54,000 for the 2017 tax year, and $55,000 for the 2018 tax year. Maximum tax deductible employer contribution is 25% of compensation. Deductible as a business expense and not required every year.|
|Employee contributions||Either pre-tax or Roth employee deferral contributions can be made for up to $18,000 for the 2017 tax year and $18,500 for the 2018 tax year ($24,000 for the 2017 tax year and $24,500 for the 2018 tax year for employees age 50 or older). Contributions can’t exceed 100% of compensation.|
|Total contributions||The combined amount of employer plus employee contributions can't exceed $54,000 for the 2017 tax year ($60,000 for employees age 50 or older).|
The combined amount of employer plus employee contributions can't exceed $55,000 for the 2018 tax year ($61,000 for employees age 50 or older).
|Investment choices||More than 100 Vanguard mutual funds.|
|Eligibility||No age or income restrictions.|
|Account service fees||$20 per year for each Vanguard fund held in a Vanguard Individual 401(k) account. If at least one participant qualifies for Flagship Select™, Flagship®, Voyager Select®, or Voyager® Services, the account service fee will be waived for all participants in the plan. However, if the plan administrator is the only person enrolled in Flagship Select, Flagship, Voyager Select, or Voyager Services, but he or she doesn't participate in the plan, the fee will apply.|
Tool to help you choose
Why choose a Vanguard Individual 401(k)
- Save money
- The average Vanguard fund expense ratio is 82% less than the industry average.* Our plans also don't require a setup fee.
- Find the right investments
- We offer a diversified fund lineup with no minimum initial investment that has delivered solid long-term investment results.** See our listings in Money magazine.*** Vanguard also is one of the few investment companies to offer a Roth 401(k) option.
- Simplify your plan
- Take a tour of Small Business Online to see how you can manage and make contributions to your plan. Your employees can use vanguard.com to track their investments.
It's easy to get started
We can provide all the help you need to set up your plan. Call a small-business specialist at 800-992-7188.