401K for employee of contract co. working for 3rd co.

summer123

My friend will work for a big co through contract co. soon. Technically he will be an employee of that contract co working at big co site. Right now that contract co does not have 401K program available and asks to set up a 401K account and they can send pre-tax money to the account. The bottom line is to try to save some tax money now.

Q is where to find and set up 401K account. Is there any tax issue later on with irs? In other words, is he eligible to have a 401K plan in this kind of situation? TDameri says ther individual 401K is suitable for self-employed individuals or a business owner without additinal employees.