For one-person business owners (and their spouse working for the business) who want the opportunity to save more for retirement.
This 401(k) plan allows one-person business owners (and their spouse working for the business) the opportunity to save even more for their retirement.
Want to learn more about Individual 401(k) Retirement Plans?
View our frequently asked questions page.
Returning Customer?
Log in as a Plan Administrator of an Individual 401(k), SEP-IRA, or SIMPLE IRA
Log in as a Plan Administrator of a 401(k) for Small Business
Questions?
Call a T. Rowe Price Small Business Retirement Specialist at 1-800-831-1344
Contributions to an Individual 401(k) Plan can help reduce your current taxable income while saving for retirement.
Consider the Example Below:
| Without an Individual 401(k) Plan** | With an Individual 401(k) Plan** | |
|---|---|---|
| Net Business Income | $100,000 | $100,000 |
| Less: 1/2 Employment Tax | $7,065 | $7,065 |
| Less: Standard Deduction | $30,000 | $30,000 |
| Less: Plan Contribution | $0 | $42,087 |
| Taxable Income | $62,935 | $20,848 |
| Regular Tax Due | $7,075 | $2,085 |
| Self-Employment Tax Due | $14,130 | $14,130 |
| Total Tax Before Tax Credits | $21,205 | $16,214 |
| Tax Deferred** | $0 | $4,990 |
We keep our mutual fund expenses low to help you save even more.2
Call a Small Business Retirement Specialist at 1-800-831-1344 to get started.
Step 1: Review the Individual 401(k) Guidebook (PDF) for product features and benefits.
Please review the Individual 401(k) Profit Sharing Plan Basic Plan Document (PDF) before completing the Individual 401(k) Profit Sharing Plan Trust and Custodial Agreement & Standardized Adoption Agreement (PDF) and Employer-Sponsored Retirement Plan Information and Services Agreement (PDF).
Step 2: Download and complete the forms, then mail them to T. Rowe Price.
Keep the original Trust and Custodial Agreement & Standardized Adoption Agreement (PDF) and send a copy to T. Rowe Price. Original Adoption Agreements submitted will not be retained. We will only retain an electronic copy.
The Information and Services Agreement (PDF) allows you to set up your account with T. Rowe Price and set up online account access via Plan Sponsor Web (PSW).
Use the Participant Account form (PDF) for yourself and your spouse (if applicable) to specify the mutual fund(s) in which you'd like to invest.
Step 3a: (optional) Download, complete the Participant Transfer-In form (PDF) and follow the mailing instructions provided on the form.
This form allows you to transfer money from another Individual 401(k) plan to your T. Rowe Price Individual 401(k) Plan.
Step 3b: (optional) Download and complete the Invest Participant Rollover Assets form (PDF) and mail it to T. Rowe Price.
This form allows you to roll over assets from a former employer's 401(k) or other eligible retirement plan to your T. Rowe Price Individual 401(k) Plan.
Step 4: Get your Plan Sponsor website operator ID
A unique Operator ID will be mailed to you once your application has been processed. It should arrive within 7 to 10 days.
Plan Sponsor Web
Step 5: Activate and set up your Plan Sponsor website
Once you've received your Operator ID and temporary password, you can access Plan Sponsor Web, which allows you to administer your plan online.
Activate and Set Up
Step 6: Contribute to your account
Once you've established your Plan Sponsor Web site, you can begin contributing.
Make Contribution
All investments are subject to market risk, including the possible loss of principal. Mutual funds are subject to management fees and expenses.
A retirement account should be considered a long-term investment. Retirement accounts generally have expenses and account fees, which may impact the value of the account. Early withdrawals are subject to taxes and possible penalties. For more detailed information about taxes, consult a tax or legal professional.
This material has been prepared for general and educational purposes only. This material does not provide recommendations concerning investments, investment strategies, or account types. It is not individualized to the needs of any specific investor and is not intended to suggest that any particular investment action is appropriate for you, nor is it intended to serve as a primary basis for investment decision-making. T. Rowe Price, its affiliates, and its associates do not provide legal or tax advice. Any tax-related discussion contained in this material, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or tax professional regarding any legal or tax issues raised in this material.
*Maximum amount of compensation that can be used in determining contribution is $350,000 for tax year 2025 and $345,000 for tax year 2024. This amount is increased periodically for inflation.
**Based on 2025 IRS Tax Tables. This chart represents an unincorporated, self-employed, married individual under age 50 with two dependent children, filing jointly. The individual has net business income of $100,000 and the spouse has no earned income. The chart shows the difference between the tax due if no contributions are made and the tax due if the maximum contribution is made to an Individual 401(k) Plan. While personal exemptions have been eliminated, there is a child tax credit each child for 2025, subject to phase-out at a higher income level. This calculation has not taken into account the pass-through deduction that may be available. Actual savings will vary depending on your personal circumstances and the availability of the pass-through deduction. Please consult with your tax advisor to discuss your specific situation.
1An annual $20 account service fee is charged for each mutual fund account with a balance below $10,000. The $20 account service fee will be waived for the following circumstances: Subscribe to electronic delivery of statements and confirmations; maintain an individual combined balance of $50,000 or more for all T. Rowe Price accounts (including mutual funds, Brokerage, and Small Business Retirement Plans); or qualify for the T. Rowe Price Summit Program. Participants can subscribe to paperless delivery via T. Rowe Price Personal Investing once their account is established. If the Account is closed during the year, a $20 closeout fee will be deducted automatically from the proceeds of the total redemption. However, the closeout fee is waived when an account service fee was previously assessed to the participant account for that year or when the proceeds are being used for a rollover, transfer or conversion to a T. Rowe Price retirement plan account or T. Rowe Price IRA.
2Source: Lipper Inc. 124 of 153 of our Investor Class mutual funds (excludes mutual funds not available for direct purchase) more than 6 months old had gross expense ratios below their Lipper averages based on fiscal year-end data available as of 9/30/2025.
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