What is a One Participant 401(k) AKA “Solo” 401(k) Plan?
The “one-participant 401(k) plan” is not a new type of plan. Clear back in 2002, Congress merely added a few sentences to the 401 tax code that recognized the fact that owner-employees whom do not have full time (1000+ hours per year) W-2 employees now could qualify for a 401k plan.
The so-called Solo 401(k) plans have the same rules and requirements as any other 401(k) plan.
A very attractive feature of these plans is the large contributions amounts allowed per participant. In fact, some of the largest contributions of any current retirement plan especially if the plan includes a profit share component.
https://www.irs.gov/retirement-plans/one-participant-401k-plans
So when you run across names such as; Solo 401k, Uni-K, Individual K plan they are all marketing names based on the tax law change in 2002.
