According to the Green Trader Tax (www.greencompany.com), an entity (e.g., SMLLC) is necessary in order to establish a 401(k) for myself. Can anyone confirm that this is in fact true? I'm not sure if this is necessarily the case. As a sole proprietor with trader tax status, I can transfer a portion of my gains to my Schedule C to offset business expenses. In prior years I stated in the footnotes that since I'm a trader I don't have to pay SE taxes on the Schedule C profits, but that prevented me from setting up a 401(k). So, by that logic, can't I just remove that statement from my footnotes and pay the SE taxes on my Schedule C profits, which would then open the door for me to set up a 401(k) for myself? Seems like a much simpler solution than having to set up an actual entity. Any accounting experts know the answer? Thanks!