Individual 401(k)s

Do you have self-employed clients who are looking for a retirement plan? The Putnam Individual 401(k) is a full-service plan designed to help self-employed individuals make the most of their retirement savings. Supported by complete online access, it is easy to administer and offers substantial benefits over traditional retirement plans.

Today's opportunity

Tax law changes passed as part of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) allow certain self-employed individuals to contribute significantly more to their retirement savings, up to $57,000 in 2020, depending on their compensation. Make sure your clients are taking full advantage of this opportunity before tax season is over.

Investors who could benefit

  • Businesses that employ owners and their spouses only.
  • Sole proprietors (doctors, lawyers, consultants, accountants, electricians, programmers) and their spouses.

Take advantage: Putnam Individual 401(k)

  • Higher level of salary deferrals than Traditional/Roth/SEP IRAs.
  • Employers/owners may contribute up to $57,000 in 2020, depending on their compensation.
  • Loans are available through the plan.
  • A broad range of flexible investment choices, including over 60 Putnam funds, as well as funds from other leading fund families.
  • A seamless amendment process that makes it easy to include additional employees as a company grows. (Additional administrative responsibilities, contribution obligations, and service fees may apply.)
  • Easy online maintenance.

Withdrawals are subject to income tax, and those made before age 59½ may be subject to an additional 10% tax.