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An Individual 401(k) Plan Might be Right for You
Individual 401(k) is a term for a 401(k) designed specifically for owner-only businesses. The business owner may have the potential to contribute greater amounts to this type of plan than other business retirement plan options. Employer contributions are tax-deductible to the business. Employee salary deferrals can be pre-tax contributions (excluded from income for federal income tax purposes) or Roth contributions (after-tax contributions and qualified distributions can be tax and penalty free).