independent 401(k)

Definition

Type of 401(k) retirement plan that is set up for a person who runs a sole proprietorship or a small business with only their spouse or an immediate family member. Allowable contributions are similar to those for other types of 401(k) plans. The difference is that the sole proprietor can also make a contribution as the employer, which will essentially raise his or her overall contribution limit that is allowed.
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indenture independent agent