Rollovers of a 401k are typically done when an employee departs from an employer. If you’re eligible for a solo 401k, rolling over a 401k into a solo 401k could give you some immediate benefits and tax-advantages that your old company 401k never offered. You get total control over what you invest in, a Roth account, […]
A solo 401k plan is only as good as what features your provider can offer you. Every solo 401k plan provider is different in the number of benefits and level of support offered. Low-cost or free plans, also called prototype plans, often don’t offer desirable features like the ability to make Roth contributions, take solo 401k loans, […]
OVERVIEW With tax-free compounding and tax-free withdrawals in retirement, a solo 401k is one of the best retirement accounts to hold high-growth assets. You don’t pay any taxes when you sell assets in your account (tax-free compounding), and with the Roth solo 401k account, you pay zero taxes on when you withdraw from your account […]
OVERVIEW The IRS does not define what you’re allowed to invest in through your solo 401k. Anything goes with a few exceptions. A solo 401k account is not allowed to invest in collectibles, S corporation stock, and life insurance investments. The solo 401k comes with total investment freedom. Unlike something like a traditional 401k, you’re not limited […]
Any business structure is eligible to open and contribute to a solo 401k plan as long as they meet the basic eligibility rules, and that includes multi-member LLCs. To qualify, you must have any form of business, side hustle, or self-employment income and no employees, including part-time employees who have reached 21 years of age, […]
2022 Solo 401k Limits & Deadlines The solo 401k contribution limit for 2022 was $61,000 ($67,500 if you were at least 50 years of age by December 31, 2022). The contribution deadline for corporations, multi-member LLCs, and partnerships was March 15, 2023, and the deadline for C corporations and sole proprietorships was April 18, 2023. […]
A solo 401k plan is a 401k designed for individuals. Rather than your employer sponsoring the plan for you, if you want access to the tax benefits a solo 401k gives you, you’re responsible for setting up a plan for yourself. There are many solo 401k plan providers out there, each one offering different features […]
OVERVIEW Most people will start to withdraw from their solo 401k plans when they reach the eligible withdrawal age of 59½. But some people may not immediately need to take out any money and instead prefer to leave the money in their solo 401k for as long as they can. Unfortunately, the IRS doesn’t allow […]
OVERVIEW Considering starting a solo 401k? Download the Solo 401k Handbook: Everything you need to know in a handy PDF: There seems to be some confusion around what business entities are eligible to open a solo 401k account. Because it’s called a “solo” 401k, and also often referred to as an individual 401k or a one-participant […]
