There are special rules that apply to what is often referred to as an “owner-only” plans (formally known as Keogh Plan). These types of plans are not a different type of 401(k) plan. Rather they are a traditional 401(k) plan that covers one person (owner) and his/her spouse.
In the Industry these types of plans are often referred to as:
- Solo 401(k)
- Solo K
Keep in mind that the above referenced names are product names and not a different type of plan. Many document providers offer a separate pre-approved plan just for a one participant plan. Ftwilliam.com does not have a specific plan document for a one-participant. Meaning any of plan document types (i.e. Standardized, Non-Standardized) may be used.
For more information on the rules surrounding one-participant 401(k) plans, you can reference the IRS website - here.
Please Note: The IRS requires that the Plan Sponsor obtain an Employer Identification Number (separate from the owner’s Social Security Number) to establish a retirement plan trust. An owner can apply for an EIN either by filing a SS-4 Form with the IRS or by completing the form online here.