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MBO's E*TRADE Partnership
Maximize your retirement savings through MBO's partnership with E*TRADE.
Depending on your corporate structure, you may be eligible to enroll in either a Simplified Employee Pension Individual Retirement Account (SEP-IRA) or an Individual 401(k) to set aside money for retirement.
MBO selected E*TRADE as the partner of choice for providing maximum flexibility and personalized customer experience.
Have questions or interested in enrolling?
Contact the Tax & Retirement Group for inquiries regarding Individual/Roth 401(k) account applications at 1-877-921-2434. E*TRADE can advise you on which plan may be available to you depending on your business setup.
Please find more information on each retirement plan below.
E*TRADE SEP-IRA
The SEP-IRA retirement plan offers:
- No minimum initial deposit
- No annual fees and no account minimums
- Flexibility in building your portfolio
- Pre-tax contributions providing tax advantages to your company
- Roll-over pre-tax contributions from a traditional retirement account
- Brokerage options to manage your investments
- Access to a personal financial advisor
HOW DO I ENROLL IN THE SEP-IRA?
Navigate to E*TRADE's SEP-IRA webpage and click the 'Open an account' button, then follow the steps below to enroll.
You can also contact an E*TRADE support specialist to learn more or enroll at 1-866-789-0726.
WHAT ARE THE CONTRIBUTION LIMITS?
Contributions to a SEP-IRA cannot exceed the lesser of:
- 25% of your net adjusted self-employed income, or
- $69,000 total retirement contributions for 2024
($76,500 if age 50 or older)
Note that elective salary deferrals and catch-up contributions are not permitted in SEP plans. Loans from SEP plans are also not permitted.
WHAT ARE THE BASIC DISTRIBUTION RULES FOR A SEP-IRA?
You can take distributions from your SEP-IRA at any time. There is no need to show a hardship to take a distribution. However, your distribution will be included in your taxable income and it may be subject to an additional tax if you are under age 59½.
E*TRADE INDIVIDUAL 401(K)
An Individual 401(k) is a retirement savings option that qualifies as an IRS-approved and ERISA-governed platform. It is designed for self-employed individuals or the sole owner-employee of a corporation where there are no full-time employees other than themselves and their spouse. An Individual 401(k) is sometimes referred to as a Solo 401(k), a Uni 401(k), or a one-participant 401(k).
Additionally, MBO has negotiated exclusive savings with E*TRADE, including:
- Special pricing with stock and ETF trades, along with low transaction fees on leading mutual funds
- Ask about other incentives, including sign-on bonuses, when setting up your account with E*TRADE
HOW DO I ENROLL IN THE INDIVIDUAL 401(K)?
Visit MBO's E*TRADE landing page for more info. Contact an E*TRADE support specialist to learn more or enroll at 1-866-789-0726.
You can also set-up your E*TRADE retirement account by completing the E*TRADE Individual 401(k) Account Application and returning to E*TRADE for processing. Your E*TRADE account(s) will be available to receive contributions (rollovers, payroll contributions and profit sharing contributions) within three business days following receipt of completed application.
PERSONAL CONTRIBUTIONS
- Contributions are made at the personal level as a payroll deferral
- Contribution is either made pre-tax into a traditional 401(k) or post-tax into a Roth 401(k) account
- 2024 annual limit is $23,000 ($30,500 if age 50 or older)
INDIVIDUAL 401(K) CONTRIBUTION LIMITS?
The contribution limits in an Individual 401(k) with one participant are the same as a traditional 401(k) plan. The personal deferrals can be split between traditional pre-tax and Roth after-tax contributions. Consult with your financial advisor to determine your optimal retirement contribution strategy.
See below for a few scenarios to consider, based on 2024 values. Please consult with E*TRADE to determine if you are eligible for profit-sharing contributions in your plan.
Scenario 1: Maximum Personal Deferral, Maximum Profit-Sharing
Total maximum retirement contributions = $69,000 ($76,500 if age 50 and up)
- $23,000 max personal deferral ($30,500 if age 50 and up)
- $46,000 max profit-sharing contributions (not to exceed 25% of gross compensation)
Scenario 2: Zero Personal Deferral, Maximum Profit-Sharing
Total maximum retirement contributions = $69,000
- $0 personal deferral
- $69,000 max profit-sharing contributions (not to exceed 25% of gross compensation)
Scenario 3: Maximum Personal Deferral, Zero Profit-Sharing
Total maximum retirement contributions = $23,000 ($30,500 if age 50 and up)
- $23,000 max personal deferral ($30,500 if age 50 and up)
- $0 profit-sharing contributions
TAX COMPARISON: TRADITIONAL VS. ROTH 401(K) CONTRIBUTIONS
| Personal Deferral | Pre-tax dollars | After-tax dollars |
| Taxation of Distributions | Entire distribution (including contributions and earnings) is taxable | Qualified distributions (including contributions and earnings) are tax free |
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