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Individual 401(K) Retirement Plan

The individual 401(k) plan is a type of 401(k) plan, as the name denotes, designed specifically for owner-only coverage. While you’ll find these plans marketed under a number of different names (Individual(k), Uni-K, Solo-K, Owner-Only 401(k)), the common characteristic is that these names are used to denote a 401(k) product that is designed specifically for the “owner-only” market.  

Feature Summary Details
Employer Eligibility Restricted Only appropriate for businesses that qualify for
owner-only coverage
Minimum Age Restriction Age 18 States may require employees to be 18 years of age to begin contributing to a 401k
Maximum Service Restriction 1 Year of Service Potentially viable for business with common-law employees if employees work less than 1000 hours/yr.
Annual Notifications/Reporting Form 5500-EZ Must file Form 5500-EZ with IRS/DOL once plan assets reach $250,000 (and last plan year regardless of assets)
Funding Options Employer and Employee Maximum contributions typically achieved through combination of profit sharing and employee deferral
Maximum Contribution (2024)


Extra $7,500 (age 50+)

Ability to achieve maximum funding is dependent on business owner’s level of compensation
Special Features

Plan Loans

Higher Funding

May afford advantages not available through SEP or SIMPLE IRA (e.g., plan loans, higher funding)
Withdrawal Restrictions Yes Typically not distributable prior to death, disability or separation from service or plan termination