Practical Law Glossary Item w-001-8301 (Approx. 2 pages)
Glossary
One-Participant 401(k) Plan
A retirement plan that is a traditional 401(k) plan that covers a business owner with no employees or the business owner and his spouse. A one-participant 401(k) plan has the same rules and requirements as any other 401(k) plan. The owner can contribute both elective deferrals and employer non-elective contributions. Taxation is deferred until distribution.