SBO-401(k)

AAA

DEFINITION of 'SBO-401(k)'

A tax-deferred, government-registered retirement savings plan that is specially designed for small business owners (SBOs). Eligible participants for an SBO-401(k) are businesses that employ the business's owners and their spouses. The business must not have any other eligible employees.

INVESTOPEDIA EXPLAINS 'SBO-401(k)'

An SBO-401(k) provides self-employed small business owners the opportunity to participate in a tax-deferred retirement savings plan. These types of savings plans may be either self-directed or professionally managed.

VIDEO

RELATED TERMS
  1. Business Plan

    A written document that describes in detail how a new business ...
  2. Roth 401(k)

    An employer-sponsored investment savings account that is funded ...
  3. Entrepreneur

    An individual who, rather than working as an employee, runs a ...
  4. Microenterprise

    A small business that employs a small number of employees. A ...
  5. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  6. Mom And Pop

    A colloquial term for a small, independent, family-owned business. ...
Related Articles
  1. I own a small business. Can the SBO-4 ...
    Entrepreneurship

    I own a small business. Can the SBO-4 ...

  2. 6 Retirement Savings Tips For 45- To ...
    Savings

    6 Retirement Savings Tips For 45- To ...

  3. Introduction To The 401(K)
    Budgeting

    Introduction To The 401(K)

  4. When Your Employer Cuts Your 401(k) ...
    Options & Futures

    When Your Employer Cuts Your 401(k) ...

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center