Owner Only / One Person 401(k)
A recent tax law permits the owner/ partner/shareholders of a small business, and
their spouses, to maximize contributions if net compensation is less than $160,000
(indexed for 2002).
Employee eligibility requirements are typically limited to attainment of age 21.
Contribution types and limits are the same as those for a 401(k)
profit sharing plan.
Filing a Form 5500 is not required until either the total plan assets exceed $100,000
or an employee other than an owner/partner/ shareholder or their spouse enters the
plan. Additionally, discrimination testing is not required until an employee other
than an owner/partner/shareholder or their spouse enters the plan.
our Qualified Plan Comparison chart (.PDF format) to compare this product to other
Qualified Retirement Plan options.
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