401(k)

[Guest JFBEARB]

What is a Mini 401(k) or Uni 401(k)? And where can I find more information on this?

[mming]

I believe that they refer to one-man 401(k) plans. You probably won't find these names in any regs as they were created for marketing purposes by investment or admin firms. The plans are a result of EGTRRA legislation that permits elective deferrals to be excluded from the 25% of comp limitation effective in 2002 resulting in larger overall contributions. As they work more or less like a traditional 401(k) plan, additional info can be obtained from EGTRRA and how it relates to historical 401(k) legislation such as Treas. Reg. 1.401(k) and IRS sec. 401(k), and of course, from the cos. that set up such plans.

[Blinky the 3-eyed Fish]

Uni-K is a name of Pioneer Investments 401(k) plan. The idea is that the one-man business sets up the 401(k) plan with Pioneer and the assets are invested there as well. Thus, the costs for setting up the document and for administration are very low.

However, I received the information from Pioneer and as the old saying goes, "You get what you pay for". I see some of these plans as problems waiting to happen. For example, if the once one-man business hires a non-highly compensated employee, no one from Pioneer is going to provide any sort of administrative advice or discrimination testing.

Also, for a sole-proprietor, they have a worksheet to calculate your net earned income yourself. That won't cause any miscalculations I am sure!