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.  




Employer Eligibility


Only appropriate for businesses that qualify for
owner-only coverage

Maximum Age Restriction

Age 21

Potentially viable for business with common-law employees if all are under age 21

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 (2016)


$59,000 (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


Typically not distributable prior to death, disability or separation from service or plan termination