Net earnings from self-employment (NESE)
Definition The gross income derived by an individual from any trade or business carried on by the individual, less the deductions allowed that are attributable
Retirement Plans for Small Businesses
Employer-sponsored retirement plans that are ideally suited for business with 1 to 100 employees
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Net business income (NBI)
Definition The amount of income from self-employment income after ordinary and necessary business expenses. The net business income is the amount on which the self-employed
Profit sharing plan
Definition An employer-sponsored qualified-retirement-plan, established by an employer for the benefit of its employees and their beneficiaries. Profit sharing plans are defined contribution plans, funded
Prototype Plan
Definition A plan that is made available by a prototype sponsor for adoption by employers and under which a separate funding medium is established for
SBO 401(k)
Definition An SBO 401(k), is a 401(k) plan established by self-employed individuals for their businesses. Brand names for these plans include Individual-K, Solo-K and Uni-K
Small Business Job Protection Act of 1996
Definition Small Business Job Protection Act of 1996, Pub. L. 104-188 (SBJPA ) Act which include provisions that provided tax relief for small businesses, protect
SAR-SEP
Definition Salary Reduction Simplified Employee Pension Plan (SARSEP or SAR-SEP) A simple employee pension plan (SEP), to which employees may make salary deferral contributions. Definition
Safe Harbor 401(k) Plan
Definition 401(k) plans that make contributions in accordance with a safe-harbor formula, resulting in the plan not being subject to the ACP and ADP nondiscrimination
SIMPLE IRA 2-year rule
Definition 2-year restriction placed on transfers, rollovers and conversions of SIMPLE IRA assets. Under this restriction, SIMPLE IRA assets are ineligible to be transferred, rolled
