Welcome! | Ask A Question
Asked 7/30/2010
|
How does an Individual 401k work? How does an Individual 401k work? |
Answer 1/1 - Submitted 5/14/2011
I will assume that you mean a 401(k) plan for an individual, or business owner only.
These plans work just like a normal 401(k) except they are designed for companies without employees. These are usually sole proprietors or partnerships where all possible plan participants are owners. The key here is that this means there are no tests required that may limit a participant or employer's (who are the same people really) contributions into the plan.
Since those tests and the limits those tests might impose are not required, the employee and the employer may both maximize the contributions to the plan as established every year. This is a great way for a owner-only company to sock away a whole lot of tax-deferred money into a plan.
Type your Answer in the box below and post your answer.
Related Questions (Ask a New Question)
I am 26 years old and currently have $25k in my 401k plan. i want to quit work next year (i make 70k and contribute 8%, my company matches up to 5%) and be a stay-at-home mom for a few years, maybe even 5, before i return to the work force again. i am not sure what the best option is for my 401k....
I have a ft job where i am not offered an employer sponsored retirement plan. i also do some consulting on the side and have an llc set up for that. can i establish an individual 401k at my llc, "invest" my income into that llc, and make contributions in excess of the revenues of the llc?
The company i work for is looking into firing the company that handles our 401k and instead having everyone roll their 401k money into self-managed stocks. however, i have an outstanding 401k loan that i'm only 12 months into paying. how is the company's decision going to affect me? currently...
|
I want to quit work when i have a baby next year. what should i do with my 401k? I am 26 years old and currently have $25k in my 401k plan. i want to quit work next year... |
|
I have a ft job where i am not offered an employer sponsored retirement plan. i also do some... |
|
Company stopping 401k program, but i have a 401k loan The company i work for is looking into firing the company that handles our 401k and instead... |
|
I can't find my 401k and the company i work with them was closed ten year ago and i not... |
|
I've changed jobs and want to roll over my 401k from my old job to the 401k at my new... |
|
Can i roll over my previous 401k account to a dif company and have it in individual stocks Can i roll over my previous 401k account to a dif company (td ameritrade 401k) and have it... |
Ask A Question
Ask a new question about
401k:
About
| Contact Us
| Membership Agreement
| Privacy Policy
| Site Map
| Advertise on this Site
Copyright © 401kQuestions.net 2012. All rights reserved.