Who should open an Individual 401(k)?
The Individual 401(k) is designed for owner-only businesses looking to save more for retirement than previously possible with a traditional small business retirement plan. The plan maximizes contributions for a sole proprietor or partnerships with earned income of less than $245,000[1]. Individuals with income greater than this level can usually make the maximum contribution of $49,000[2] without using the salary deferral feature.
