The SBO-401(k) can only be adopted by businesses in which only the business's owners are eligible participants in the plan. The ideal candidate for the SBO-401(k) is an employer who has employees, they do not satisfy both criteria for being included in the plan. To be eligible, a person must work at least 1,000 hours each year, but there may be age restrictions. To be sure, you should check the provisions of the SBO-401(k) plan document that you intend to adopt. Most of these documents include a hard-coded definition of "eligible employee".
Note: Bear in mind that if you have other businesses, you may also need to take those businesses into consideration. Ownership in other businesses may affect your eligibility to adopt a SBO-401(k) plan.
To learn more, read 401(k) Plans For The Small-Business Owner and Plans The Small Employer Can Establish.
This question was answered by Denise Appleby