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Maria - I am in the same position as you. I elected to set up two corporate plans, a profit sharing plan that can contribute up to 15% per year of my compensation and a 10% money purchase plan. The only reason I did two plans was the possibility of having a down year and not being able to fund all 25%. If you are sure you can part with 25% go with a single money purchase plan since the set up and other fees will be less than if you have two plans. Luckily I have been able to hit the 25% max. in each year.

BTW you are also limited to a max. of $30,000 each year. If the corp. is not an S corp. you can also put in loan provisions to borrow from the plan if you need to. Obviously, you should not do this absent a dire emergency since it pulls money (albeit temporarily) out of the tax-deferred growth stream.

Finally, if you wind up hiring an employee and can keep the employee to less than 1,000 hours per year you can exclude the employee from the plan.

Good luck!
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