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, […]
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 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 […]
OVERVIEW The solo 401k and SEP IRA are retirement accounts created for small business owners and self-employed individuals. Both have the same contribution limits, offer tax-free compounding on investments, and all business entities are eligible. A solo 401k offers more tax advantages than a SEP IRA, but has stricter eligibility requirements. Depending on your business, one might make […]
The highest contribution limits, ability to invest in any asset class with tax-free compounding, and a supersized Roth account.
OVERVIEW & FAQ A solo 401k has no annual tax filing requirements set by the IRS, unless your account assets exceed $250,000 in value. Account holders with over $250,000 in assets must file Form 5500-EZ each year. However, pre-tax contributions made to a solo 401k are tax deductible, so you still need to claim the deductions when […]
One of the biggest advantages of a solo 401k is that you have more flexibility in how you contribute to your plan. However, this can also cause some confusion if you’re making contributions for the first time. When you open a solo 401k plan, you’ll see several contribution types. If you’re unsure what each one […]
Any business entity is eligible to open and contribute to a solo 401k plan as long as they meet the general solo 401k eligibility rules. An S corporation is also allowed to open a solo 401k, but there’s one additional eligibility rule if it has multiple shareholders. Here’s everything you need to know about opening a solo […]
LLC stands for Limited Liability Company, and it’s one of the most common business structure in the U.S. An LLC, and any other business structure is eligible to open a solo 401k. However, there’s a small difference in how employer contributions get calculated depending on if your LLC is incorporated or taxed as a sole proprietorship. […]
