Solo 401K Reviews

A Solo 401(k), also known as an individual 401(k), is a type of retirement account designed for self-employed people with no full-time employees. It's a traditional 401(k) plan covering a business owner with no employees, or that person and their spouse. These plans have the same rules and requirements as any other 401(k) plan.

The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities. The owner can contribute both elective deferrals up to 100% of compensation and employer nonelective contributions up to 25% of compensation as defined by the plan.

The total solo 401(k) contribution limit is up to $69,000 in 2024. There is a catch-up contribution of an extra $7,500 for those 50 or older. You can choose between traditional or Roth 401(k) tax advantages, and cover both you and your spouse.

A business owner with no common-law employees doesn't need to perform nondiscrimination testing for the plan, since there are no employees who could have received disparate benefits. The no-testing advantage vanishes if the employer hires employees.

The Solo 401k plan offered by Solo401k.com has an Affordable Monthly Fee of $99/year and a one-time setup fee of $499. This plan provides more investment options, the highest contribution limits, and the lowest fees of any fully self-directed retirement plan. The Solo 401k allows contributions of up to $61,000 ($67,500 if you are age 50 or older). This can be fully tax-deductible or mixed with tax-free "Roth" status. Your Solo 401k will provide you a loan of up to $50,000 with automatic approval, and you can use the money for any purpose. The plan also includes IRS Approved Documents, a Specialty "No Fee" Bank Account, and your own Solo 401k Checkbook. The Solo 401k is a retirement plan for the self-employed, including freelancers, independent contractors, and small business owners. Your business can be a sole proprietorship or a formally structured LLC, C Corp, or S Corp. You are eligible for a Solo 401k if there are no outside full-time common-law employees in any business owned by you and/or your spouse.

A Solo 401(k), also known as a one-participant 401(k), is designed for a business owner with no employees. It mimics many of the features of an employer-sponsored plan. The total solo 401(k) contribution limit is up to $69,000 in 2024, with an additional catch-up contribution of $7,500 for those 50 or older.

On the other hand, a SEP IRA (Simplified Employee Pension IRA) was created to extend the IRA concept to small businesses. SEP IRAs offer more generous tax breaks than personal IRAs. In some cases, the tax deduction for a SEP IRA can be nearly nine times that of a traditional or Roth IRA. The maximum SEP IRA contribution is the lesser of 25% of the employer’s compensation or $66,000 for 2023 ($69,000 for 2024).

One key difference between them is that only the employer can make contributions to a SEP IRA account, while a Solo 401(k) allows for both employer and employee contributions. Another difference is that Solo 401(k)s allow for loans, while SEP IRAs do not.

In summary, both Solo 401(k) and SEP IRA are excellent options for self-employed individuals or small businesses, but their key differences may make one better for you depending on your specific needs and circumstances.

Yes, you can generally rollover your existing IRA or 401k into a Solo 401k. This process allows you to move pretax traditional IRA assets into a Solo 401k. It's important to note that your company plan must accept incoming transfers for this to be possible. However, a Roth IRA cannot be rolled into a Solo 401k as per IRS rules. When you directly roll over an eligible IRA or employer plan retirement fund to a Solo 401k Plan, the rollover is not considered a taxable distribution. The 60-day rollover rule would not apply and there would be no withholding. The transferring financial institution would be the party required to file the IRS Form 1099-R with the IRS. The receiving financial institution is not required to report the rollover transaction. If the Solo 401k Plan participant has plan assets of more than $250,000, the Solo 401k Plan participant is required to file an IRS Form 5500-EZ. The IRS Form 5500-EZ will provide the IRS with the annual Solo 401k plan account value, which allows the IRS to match up the funds that were rolled over and identified on the IRS Form 1099-R.

Solo401k.com offers a variety of services and products. The primary offering is the Solo 401k, a retirement plan for the self-employed, freelancers, independent contractors, and small business owners. This plan provides more investment options, the highest contribution limits, and the lowest fees of any fully self-directed retirement plan.

The Solo 401k allows contributions of up to $61,000 ($67,500 if you are age 50 or older). This can be fully tax-deductible or mixed with tax-free "Roth" status. Unlike a conventional loan, your Solo 401k will provide you a loan of up to $50,000 with automatic approval, and you can use the money for any purpose.

Investment options include real estate, precious metals, private equity, private lending, startups, Bitcoin, and other cryptocurrencies, in addition to stocks, bonds, and ETFs. With a Solo 401k, you can borrow up to $50,000 tax-free, for any purpose, and your spouse can too.

The company also offers a Specialty "No Fee" Bank Account Included with Your Own Solo 401k Checkbook. The Solo 401k plan is secured with bank-grade encryption. The company prides itself on being the Original Solo 401k provider, fully self-directed, and with checkbook control. They have a deep history in this space and a thriving community with special events and unbeatable service. They care about their clients and are here for the long haul.

A Solo 401k, also known as a one-participant 401k or self-employed 401k, is a retirement plan designed for self-employed individuals or business owners with no full-time employees. The business owner can contribute to the plan in two capacities: as an employee and as an employer.

As an employee, they can make elective deferrals up to 100% of their compensation, with an annual contribution limit of $22,500 in 2023, or $30,000 if they are 50 years or older. As an employer, they can make nonelective contributions up to 25% of their compensation.

The total contributions to a participant's account, not counting catch-up contributions for those age 50 and over, cannot exceed $66,000 for 2023. The benefits of a Solo 401k include tax deductions, loan options, and Roth contributions. However, it also involves more administration, fees, and complexity compared to other retirement plans.

To open an account with solo401k.com, you need to follow these steps:

1. Understand the Eligibility Requirements: Solo 401k is a retirement plan for the self-employed. This is for freelancers, independent contractors, and small business owners. Your business can be a sole proprietorship or a formally structured LLC, C Corp, or S Corp. You are eligible for a Solo 401k if there are no outside full-time common-law employees in any business owned by you and/or your spouse.

2. Find a Solo 401k Provider: Choose a solo 401k provider, which will give you a plan adoption agreement and an application.

3. Complete Plan Documents & Disclosures: The provider will provide a plan adoption agreement for you to complete, as well as an account application.

4. Open an Account With Your Provider: Once you've completed the plan adoption agreement and the application, you can open your account.

5. Make Contributions to Your Solo 401k: The last step is to set up your contribution amounts and choose your investment options.

Please note that you'll need an Employer Identification Number (EIN) before you can open a solo 401k account. You can obtain one online, by fax, or by mail. If you apply online, you can have your EIN in about 10 minutes.

Remember, Solo 401k plans require a plan administrator, also known as an investment provider, to help with regulatory paperwork. If you plan to hire employees in the future, a solo 401k plan can convert to allow full-time employees within the company’s 401k plan.

A Solo 401k is a retirement plan designed for people who work for themselves. If you run a small business with no employees, you can qualify for a Solo 401k. Your spouse can qualify if he or she is involved in the business. A fellow business partner who is an owner is also eligible. The key is that no common-law employees are eligible to participate. A Solo 401k is not the right option for your business if you have employees that you want covered by a retirement plan.

This retirement plan can be a powerful tool in your savings efforts. It allows you to invest in just about anything. Investment options include stocks, mutual funds, bonds and exchange-traded funds. Keep in mind there are some prohibited investments. Contributions to a Solo 401k can be made on a pre-tax basis to a traditional account. They can also be made on an after-tax basis to a Roth account if your custodian offers this option. Just like employer 401k plans, you typically can’t withdraw money in a Solo 401k until age 59 ½. Taking money out before then means you may pay taxes on those funds in addition to a 10% penalty.

Many major online brokerage firms offer a 401k option for self-employed people. Most plans are similar but may have different costs, options or features. It’s worth researching all of these companies to see which one offers a Solo 401k that is a good fit for you. If you want to set up a Solo 401k but prefer not to use a major discount brokerage firm, there are also self-directed 401k options available.

A Solo 401(k), also known as a One-Participant 401(k) or Individual 401(k), is a type of retirement account designed for self-employed individuals with no full-time employees, except for the business owner and their spouse. This plan is not a new type of 401(k) plan, but a traditional 401(k) plan covering a business owner with no employees, or that person and their spouse.

The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities. The owner can contribute both elective deferrals up to 100% of compensation (or "earned income" in the case of a self-employed individual) up to the annual contribution limit, plus employer nonelective contributions up to 25% of compensation as defined by the plan.

The total contributions to a participant's account, not counting catch-up contributions for those age 50 and over, cannot exceed a certain limit per year. For example, the limit was $66,000 for 2023. If the business owner is also employed by a second company and participating in its 401(k) plan, they must consider the limit for all elective deferrals they make during a year.

A business owner with no common-law employees doesn't need to perform nondiscrimination testing for the plan, since there are no employees who could have received disparate benefits. The no-testing advantage vanishes if the employer hires employees.

You can contact Solo401k.com customer service by phone at 877-765-6401 or by email at info@solo401k.com. Their office is located at 600 17th Street Suite 2800 Denver, CO 80202. They are available for assistance from Monday to Saturday, 8 am to 6 pm MT. If you need to send a fax, their fax number is 775-201-1456. Please note that this information might have changed, so it's always a good idea to check their official website for the most up-to-date contact information.