What is an Individual 401K?
It is simply that. If you are self-employed without any full-time employees (other than a spouse that can be employed), you can qualify for your own 401K plan. In fact, even IF you are employed in a W-2 position, but have additional self-employment activities and income, you can participate in your own individual 401k plan. So, whether you are a Sole Proprietor or incorporated (e.g, c-corp, s-corp, LLC), you can have your own 401k and direct your own retirement assets.
How Do I Qualify for the 401k under IRS Regulations?
More importantly, how does the IRS define a self-employed individual? And for those of you who just want it spelled out to you, the IRS defines self-employment as:
Just remember, if you meet these criteria, you can establish your own 401K and self-direct your own retirement assets!