Independent 401(k)

Independent 401(k)

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Independent 401(k)

Independent 401(k) definition:  An independent 401(k) is a tax-deferred retirement savings vehicle for self-employed (family business owners). No outside employees are permitted, only immediate family members. Testing and compliance are not required of independent 401k plans (as associated with larger employer 401k plans). Contributions are tax deductible, and money in the account grows tax-free until withdrawals are made. Catch-up provisions for those over 50 years of age are allowable for an independent 401(k) plan, making the contributions limits higher than compared to SEP IRAs. All contributions to an independent 401(k) are completely discretionary.  Loans are also permitted with an independent 401(k).

Download our free Family Office Report to learn more about the family office industry.

Read more Family Office Definitions

Tags: What is independent 401(k)?, independent 401(k) definition, independent 401(k) family office, independent 401(k) term, define independent 401(k), independent 401(k) wealth management, independent 401(k) multi-family office, independent 401(k) single family office

Leave Your Response

* Name, Email, Comment are Required

We run the Family Offices Group, the #1 largest family office association with 84,000+ global members. We offer live events, a bestselling book, Webinars, a family office database, and a family office training & certificate program called the Qualified Family Office Professional (QFOP). To get to know us please watch this 2 minute video, and contact us any time during pacific business hours by calling (212) 729-5067 or emailing us at Clients@FamilyOfficesGroup.com.

Free Family Office Report (PDF)

Contact Details for 1,000 Family Offices in Excel