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General DescriptionA flexible plan offering provides the highest level of employee pre-tax contributions, a wide range of employer contribution options, and an optional loan provision.

Wells Fargo offers an all-in-one bundled solution including:
  • Professional asset management and investment monitoring
  • Recordkeeping
  • Compliance
  • Participant communications
Eligibility to ContributeEligibility requirements are set at the time the plan is established.
Maximum Annual Contribution
  • Employer: Profit sharing and match: Up to 25% of compensation or $52,000 including employee contributions for 2014.
  • Employee: Up to 100% of compensation or $17,500 ($23,000 if over age 50) for 2014.
  • Combination may not exceed $52,000 ($57,500 if over age 50) for 2014.
Tax-Deductible Contributions
  • Employers can deduct contributions from federal taxable income.
  • Employees can make pre-tax contributions.

Your plan may allow you to allocate part or all of your deferral to a Roth 401(k). Roth 401(k) salary deferrals are not tax deductible but contributions and earnings grow tax deferred and may be eligible for income tax free withdrawals if held for five years and withdrawn after age 59 ½.
Taxation of Earnings and WithdrawalsPre-tax contributions and earnings are taxed as ordinary income when withdrawn.
Types of InvestmentsBroad array of mutual funds.
Withdrawal Penalties 10% IRS early withdrawal penalty if withdrawn before age 59 ½ unless exception applies.

Some exceptions:
  • Separation of service after reaching age 55
  • Death
  • Disability
  • Rollover to an IRA
  • Substantially equal payments made over life expectancy
  • Qualified military reservist
Required WithdrawalsMust begin at age 70 ½ for those no longer working for the employer. (Note some exceptions may apply.)
Deadline to Set Up and Fund
  • Plan must be established by the last day of the business’ fiscal year. (Note that it may take up to 90 days to establish a plan.)
  • Salary deferral portion of the contribution must be deducted from participants’ paychecks.
  • Employer contribution may be made through the business’ tax filing due date plus extensions.
Commissions and FeesVaries by mutual fund family.
Learn more about saving for retirement; contact a Wells Fargo financial professional today!
Call1-800-690-9721
 
Investment and Insurance Products: Are Not insured by the FDIC or any other federal government agency - Are Not deposits of or guaranteed by the Bank or any Bank Affiliate - May Lose Value
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Information published by Wells Fargo Bank, N.A., Wells Fargo Advisors, or any of its affiliates as part of this web site is published in the United States and is intended only for persons in the United States.
Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is the trade name used by two separate broker-dealers: Wells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank affiliates of Wells Fargo & Company.