What will my second-year contribution look like?

In year two of your plan, you will usually have more flexible funding options. You will be given a minimum contribution, maximum contribution and a targeted amount. If you decided to front load your plan, then you might see a reduction of 20% to 40% in year two.

However, if you established a base contribution that is in line with your compensation, then usually in year two your minimum contribution might be 10% on the low end and the maximum contribution might be 50% above your year one contribution. So, you will have some funding flexibility in year two. This is especially true to the upside.

But if you want us to take a look at your situation, just ask us. But of course, this depends in part on the return on your assets and your compensation or business profit for a sole proprietor.