If you have a Solo 401k, or want to establish a plan for the 2023 tax year, here are all the important dates and deadlines you’ll need to know for setting up a plan, making contributions, and filing forms to the IRS. Before you dive in, download a printable PDF guide with all the important […]
2023 Solo 401k Limits & Deadlines 2024 Solo 401k Limits & Deadlines 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 […]
OVERVIEW & FAQ While a solo 401k gives you total freedom in what you can invest in, the IRS sets strict restrictions around who the plan can make transactions with. In a solo 401k, the assets are owned by the plan, not you or your business. When you open a solo 401k account, the plan registers for its own Employer Identification […]
OVERVIEW A solo 401k plan requires that you must not have any employees, including part-time employees who are at least 21 years of age, and have worked over 500 hours per year for 3 consecutive 12-month periods. There is only one exception to this rule, your spouse. Having your spouse work in your business makes them eligible to be […]
With a Solo 401k, you can make contributions as either the employee or employer, since as a self-employed individual you are acting as both employer and employee. It is important that you differentiate between contributions you make as an employee or employer. Employee and employer contributions are subject to different limits, and are treated differently […]
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 […]
