One Person 401(k) Plan...Not a Simple Plan?

[Jilliandiz]

Is it possible to have a one person 401(k) plan that is not a simple plan? I had a financial advisor mention that today, and I've never heard of such thing...can anyone give me some imput or tell me where to look.

Thanks

[R. Butler]

Yes. Its fairly common.

[Blinky the 3-eyed Fish]

And it became far more common after 401(k) deferrals no longer counted against the deduction limit. Thus less salary is needed to maximize the available contribution.

[jquazza]

As a matter of fact, I don't see the advantages of setting a Simple (k) or IRA for one man plans. The main advantage of Simple plans is that they get you out of ADP/ACP testing and Top Heavy Minimums (and get you out of 5500 for Simple IRAs.) A one-man plan will always pass ADP/ACP and would have no issues with Top Heavy.

Now, we're talking about Simple 401(k)s or Simple IRAs, not a product offered by your firm called Simple to confuse the rest of the pension community.

[Guest rmeigs]

...can anyone give me some imput or tell me where to look.

Do a Google search on "Solo 401(k)" or "Individual(k)." You should find lots of information on one person 401(k) plans.