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We have updated our Privacy Notice to meet the requirements of new European Union regulations on data protection that take effect on May 25, 2018.   Privacy Policy »

If I start my business during the year, can I set up my plan immediately?
Yes. You can start contributing immediately. The Uni-K Plan® must be established no later than the last day of the business's tax year.
Can I change to a Uni-K Plan if I already sponsor a plan for my business?
Yes. Uni-K can accept transfers or rollovers from your current plan, but the steps you need to take depend on the type of plan you own and whether you have funded it for the current tax year. Generally, profit sharing plan owners can amend their plans into a Uni-K while money purchase plan owners must terminate their plans first. SIMPLE IRA owners who have made contributions for the current year cannot start up a Uni-K until the following year. And SEP owners may be able to establish a Uni-K for the current year, depending on the type of SEP you have adopted. Check with your advisor or call Amundi Pioneer for more information.
If I own multiple businesses, is the Uni-K Plan® right for me?
Maybe. If you have ownership in more than one business and the businesses are considered to be under common control as defined by the IRS, then your businesses are viewed as a single entity for retirement plan purposes. This means that you must include all employees when setting up a plan and the Uni-K Plan® is designed for owner-only businesses. Consult your tax advisor to determine if the Uni-K Plan® is appropriate for your situation.
Do I need to include part-time employees in the plan?
You may exclude any employee who works fewer than 1,000 hours per year.
Do I have to make contributions into the plan each year?
No. You have the flexibility to decide from year to year how much to contribute -- up to the legal limits.
Can I contribute to the Uni-K Plan® for my sideline business if I participate in another employer-sponsored plan?
You can contribute to the Uni-K Plan®. However, if you make salary deferral contributions to another employer's plan, you must count those amounts along with any deferrals made to your Uni-K when determining the maximum deferrals that may be contributed for the year. This aggregation is not necessary for employer contributions.
Can the employer contribution vary by participant?

No. Each owner and spouse must receive the same percentage-of-pay contribution. So if you give yourself a 25%-of-pay employer contribution, all participants must receive a 25%-of-pay contribution. This rule does not apply to salary deferral contributions. Each participant may choose how much to defer.

 

You may elect to have your salary deferral contributions be made on either a pre-tax or Roth basis. Use the Uni-K Remittance Form to indicate the nature of your contribution. Contact your advisor for more information.

What is the difference between an employer contribution and a salary deferral contribution?

If your business is incorporated, the employer contribution is based on your W-2 income and is contributed by the business. The maximum employer contribution is 25% of pay. It is not subject to federal income tax or Social Security (FICA) taxes. The salary deferral contributions are withheld from your pay and are excluded from federal income tax but are subject to FICA. The maximum salary deferral amount for 2018 is 100% of pay up to $18,500 or $24,500 if you are age 50 or older.


If your business is unincorporated, the employer and salary deferral contributions are based on your net earned income. For help in determining your maximum contribution amount, refer to the Self-Employed Contribution Guide in the Uni-K Set-Up Kit. Contributions are not subject to federal income tax but are subject to self-employment taxes (SECA). You receive a tax deduction for both salary deferral and employer contributions on your Form 1040.

When must contributions be made in order to take a deduction for a given year?

If your business is incorporated, the employer contribution is based on your W-2 income and is contributed by the business. The maximum employer contribution is 25% of pay. It is not subject to federal income tax or Social Security (FICA) taxes. The salary deferral contributions are withheld from your pay and are excluded from federal income tax but are subject to FICA. The maximum salary deferral amount for 2016 is 100% of pay up to $18,000 or $24,000 if you are age 50 or older.


If your business is unincorporated, the employer and salary deferral contributions are based on your net earned income. For help in determining your maximum contribution amount, refer to the Self-Employed Contribution Guide in the Uni-K Set-Up Kit. Contributions are not subject to federal income tax but are subject to self-employment taxes (SECA). You receive a tax deduction for both salary deferral and employer contributions on your Form 1040.

 

This material is not intended to replace the advice of a qualified attorney, tax advisor, or insurance agent. Before your client makes any financial commitment regarding the issues discussed here, make sure he or she consults with the appropriate professional advisor.

What are my administrative responsibilities?

Since your plan covers only owners, spouses, children and other qualifying family members, your administrative requirements are minimal. In addition to remitting contributions to the plan, the IRS requires an annual filing of the Form 5500-series. Generally, no filing is required for the year until total plan assets exceed $250,000 (or you terminate the plan (regardless of plan size)).

 

Form 5500-series filing services:

 

Effective April 1, 2017 – Amundi Pioneer now provides an IRS Form 5500 filing service to the following plans:

 

  • Uni-K Plans® with a total plan value exceeding $250,000 on December 31st of the preceding calendar year:
    • Participants in Uni-K Plans® with total plan assets exceeding $250,000* - will incur an additional $25 administration fee for preparation of the IRS Form 5500-series. (Note: this service is effective with the 2017 filing year)
  • Uni-K Plans® that fully terminate (Plan Termination) during the year will receive signature-ready IRS Form 5500-series. 

 

The signature-ready form will be made available to the Plan Sponsor 30-days prior to the IRS filing deadline. 

 

What happens if my business grows and I hire employees?

The Uni-K Plan® is designed for businesses that employ only owners, spouses, children and other qualifying family members. Additional IRS requirements must be met if the plan includes employees. If you hire any full-time employees (employees who work over 1,000 hours per year) who are not co-owners of the business, the Uni-K Plan® will no longer be suitable for your business when those employees become eligible to participate in the plan. You should consult with a qualified tax advisor if your business circumstances change.

This material is not intended to replace the advice of a qualified attorney, tax advisor, investment professional, or insurance agent. Before making any financial commitment regarding the issues discussed here, consult with the appropriate professional advisor.