Smallest businesses may benefit from 401(k)
Is an individual 401(k) plan right for you?
If you can answer “yes” to either of the following questions, then maybe it is: “Are you the sole employee of your business?” or “Does your business employ only you, your co-owners and spouses?” Chances are — even if you did answer “yes” — you’ve never considered establishing a 401(k) plan to save for retirement because you think they’re strictly for corporations. They’re not. Tax law changes have made 401(k) plans attractive for the very smallest businesses — especially if you’re looking to make substantial contributions.
An Individual 401(k) is a unique retirement savings opportunity designed for corporations, partnerships and sole proprietorships that employ only owners, their spouses and certain family members. If you’re an independent consultant, real estate agent or accountant, an Individual 401(k) may be a good retirement plan option for you.