individual 401(k) plan

Definition

A tax-qualified retirement plan designed for self-employed individuals based on the same parameters and requirements of a group 401(k) plan. Business owners who have no other eligible employees may contribute up to 25% of their total compensation in the profit-sharing portion of the plan in addition to their elective deferral of up to $15,500 in 2011 ($20,500 at age 50 or older). Also called Solo 401(k).
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individual 401(k) plan individual account management