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Step 1
To start an Individual 401k Plan, also known as self employed 401k Plan, please go to the link I have provided in the resource section. This form is a mail in form to start an individual 401K plan through Vanguard.
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Step 2
If you do not want to open your Individual 401K account at Vanguard, you can choose from any large broker that you feel comfortable with. Vanguard does not charge any set up fees so make sure the broker you go with does not charge any as well.
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Step 3
Fill out the forms and mail them in. HEre is the address to mail the forms to:
Vanguard
Retail Services
P.O. Box 1106
Valley Forge, PA 19482-1106
You will get a notification letter in the mail notifying you that your Individual 401K account is now open and active. After you receive this letter, you can create an account online to manage your Individual 401k portfolio online. -
Step 4
For the 2009 tax year, you can make total contributions of $16,500 and an additional $5,500 if you are 50 or over.
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Step 5
To make contrinbutions to your vanguard account, they must be made via the Small Business Online website by either the plan administrator or the plan contact. You have successfully started an Individual 401K plan!
