One-Person 401(k) Plan
If you're self-employed and have no employees, except for your spouse, you can set up a one-person 401(k) plan.
You're allowed to contribute more to a one-person 401(k) plan than you could to a Keogh plan.
For example, for 2012, elective deferrals of up to $17,000 ($16,500 for 2011) are permitted. If age 50 or over, an additional, catch-up contribution of $5,500 may be made for 2012.
In addition to elective deferrals, a contribution of up to 20% of net earnings can be made to your account.
For Freelancers and independent Contractors
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Have an accounting or bookkeeping question? Email it to me.
- Return to the Retirement Plans Table of Contents to find related links