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Tom Meaglia, ChFC®, AEP®, CLU®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

CA Insurance Lic. #0567507


Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750


Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120




January/February 2020

One Person, One Plan

One Person One Plan

Make contributing to a company retirement plan a New Year’s resolution, even if you are the company. Today’s retirement plan options offer choice, flexibility and ease of use, while they typically feature tax-deferred contributions and potential growth, and increased contribution limits for participants age 50 and older. Here is a look at three of these plans with contribution limits:*

The cost of setting up a SIMPLE IRA is reasonable, and the plan offers some flexibility. You can either match up to 3% of compensation if your company matches employees’ individual contributions or put away up to 2% of salary, not to exceed $13,000 in tax year 2019. Small business owners who have employees must also contribute to eligible employees’ accounts.

When it comes to contribution limits among qualified retirement plans, the Simplified Employee Pension (SEP) is generous. Solo business owners may contribute up to $56,000 or 25% of net earnings of up to $280,000 in 2019, whichever is less. If you’re self-employed, the calculation is more complicated. You can also make catch-up contributions at age 50 and beyond. There are exceptions if your business has another defined contribution plan in addition to the SEP-IRA, and rules for which employees qualify.

Individual 401(k)
Whether you have a solo business or make extra income on the side, you may qualify to put money away into an individual, or solo, 401(k) plan. And as a solopreneur, you can contribute to your 401(k) plan as both an employer and an employee.

For 2019, you could defer up to 100% of compensation or earned income, up to $19,000, plus another $6,000 if age 50 or older.* Then, as an employer, you could have contributed more — with combined contribution limits potentially as high as the SEP’s. If you hire employees and they meet the plan eligibility requirements, you must include them in the plan, and all employees, including you, will be subject to non-discrimination testing.

All three of these plans have specific rules and regulations that you must follow, including penalties for early distributions, so talk to your tax and financial professionals to learn more.



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Investment advisory services are offered through Fusion Capital Management, an SEC Registered Investment Advisor. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.
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