Which of the following statements concerning retirement plans for the self-employed is true?
I. They can be used by owners of incorporated businesses only.
II. With certain exceptions, the same rules that apply to qualified corporate plans apply to retirement plans for the self-employed.

Question

Quizplus · Accepted Answer

Retirement plans for the self-employed can be used by owners of unincorporated businesses as well as incorporated businesses. However, statement II is true – with certain exceptions, the rules that apply to qualified corporate plans (such as 401(k) plans) apply to retirement plans for the self-employed (such as a solo 401(k) or a SEP IRA).

Which of the Following Statements Concerning Retirement Plans for the Self-Employed