401(k) profit sharing plans are advantageous because they potentially allow you to contribute significantly larger amounts of money the plan compared to a SEP IRA, SIMPLE IRA or most other available retirement plans (excluding certain other defined contribution and defined benefit plans). The 401(k) profit sharing plan is available to any business, including businesses, which employ only owners and their spouses, including C corporations, S corporations, partnerships and sole proprietorships. The 401(k) profit sharing plan contains generally higher contribution limits compared to SEP IRA, SIMPLE IRA. Employer contributions — deductible contributions up to 25 percent of eligible compensation based on a maximum compensation amount of $270,000 (2017 limit.) (Slightly lower limits for sole proprietorship based on net Schedule C income and SEI tax adjustments.) Salary deferral contributions — Individual salary deferral of up to $18,000 of income (2017 limit). “Catch-up” contributions — If you are age 50 or older, you can contribute an extra $6,000 into your 401(k) plan in 2017. The sum of employer contributions and your salary deferral contributions cannot exceed $54,000 in 2017 ($60,000 for individuals over 50 years of age in 2017). Other key benefits: Contribution flexibility — As plan sponsor, you decide each year how   Read more…