Keep in mind that to qualify for a 401(k) plan, the individual (and, potentially, an individual and their spouse) must be self-employed and carry on self-employed activities. Generally, the IRS defines self-employment activities as:
1) You carry on a trade or business as a sole proprietor or an independent contractor.
2) You are a member of a partnership that carries on a trade or business
3) You are otherwise in business for yourself (including a part-time business)
Trade or Business
Part-Time Business – Are you a W-2 employee who also has self-employment activities through a home-based business? Then you most likely will qualify for a 401(k) plan for your home-based business. Think of the potential opportunities you have in front of you. Being able to operate your business’ 401(k) plan, make contributions based on your self-employment activities, and rollover other retirement funds into the plan. Think of the freedom you will have to invest your 401(k) funds into assets that you desire.