Independent 401(K) Definition
Independent 401(K) is a variation of the 401(k) designed for people who are self-employed or operate a small business with an immediate family member. The plan contribution limit is equal to other 401(k) plans, but the sole proprietor is allowed to make an employer contribution to an independent 401(k), thus raising the total contribution. Catch-up contributions are allowed for participants 50 and older.