Individual 401k Eligibility

The Individual 401k is available to self-employed individuals or business owners with no employees other than a spouse. Sole proprietorships, partnerships and corporations (including both subchapter S and C corporations) would qualify.

A business that employs part-time W-2 employees may be able to exclude them from plan participation. Independent contractors (1099 employees) employed by your business are excluded from the plan and would not disqualify you from having an Individual 401k. Generally, under federal law you are permitted to exclude the following types of employees:

• Employees under age 21.
• Employees with less than one year of service.
• W-2 employees who work less than 1000 hours per year.
• Certain union employees, and ...
• Certain nonresident alien employees.

Individual 401k Frequently Asked Questions

Find answers to your questions. Visit our Individual 401k FAQs section.

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Disclosures:

* The information on this page is for informational purposes only and does not constitute, and should not be construed as, professional, legal or tax advice. To determine your individual tax situation and specific needs, please consult a professional tax advisor.

* Information contained in these sections merely highlight some benefits. There are risks involved with all investments that could include tax penalties and risk/loss of principal.