REBNY Launches Independent 401(k) Plan

NEW YORK CITY-The Real Estate Board of New York is making available an Independent 401(k) Plan, the first of its kind for REBNY members. Offered through UBS Financial Services, the plan provides independent contractors who are REBNY members with a means to save for retirement.

“REBNY acknowledges that as an independent contractor, it's challenging to find a cost efficient and effective way to fund retirement,” says Steven Spinola, REBNY president. “With the help of UBS Financial Services, we have created a way for members to set up their own retirement plan with flexibility and support from the program.”

While traditional 401(k) plans offered to corporate employees “have become the cornerstone in retirement planning,” financial advisor Christopher L. Michelsen at UBS says independent contractors who are REBNY members can have access to the same kind of long-term benefit. The Independent 401(k) Plan, he says, “may allow them to contribute more than they could to a SEP-IRA or profit sharing plan.”

Any independent contractor without employees, other than a spouse, who is a REBNY member can take advantage of the plan. This includes those who have established sole proprietorships, S corporations, or C corporations.

Plan participants can save up to $51,000 pre-tax annually under 2013 IRS limits, compared with $17,500 allowed by traditional corporate 401(k) plans. In addition, those age 50 and above may make an additional $5,500 catch-up salary deferral.

The retirement savings solution also provides benefits exclusive to REBNY members. Among these are a waiver of all plan enrollment costs through June 30, 2014 and access to a team of UBS financial professionals for guidance on retirement strategy. REBNY members who are interested in more information should contact Michelsen by calling (212) 626-8515 or emailing here.