SOLO 401K BENEFITS: Considering a solo 401k? Here’s a quick breakdown of every benefit and tax advantage a solo 401k account can give you. High contribution limits The solo 401k has one of the highest contribution limits of any retirement plan. In fact, it’s 3x higher than a traditional 401k and over 10x higher than a […]
If you’re a business owner and are eligible for a solo 401k, you might be wondering how it fares against other more popular retirement plans like the traditional and Roth IRAs. This is not a fair comparison since a solo 401k is the far superior account with higher contribution limits, investment options, and doesn’t have […]
Use our solo 401k contribution calculator to determine how much you can contribute into your solo 401k for the 2023 tax year. For a quick overview on the different contribution types, limits, and rules for a solo 401k, watch the video below before getting started. How to use the solo 401k contribution calculator Step 1: […]
OVERVIEW When you open a solo 401k, one of the things you’ll be asked for is your Employer Identification Number (EIN). This guide explains the EIN requirements for opening a solo 401k, as well as details on how to apply for an EIN separately for your solo 401k account trust. What is an Employer Identification Number (EIN)? […]
OVERVIEW The IRS requires solo 401k account owners to file Form 5500-EZ each year their plan assets exceed $250,000. The good news is, it’s fairly simple to fill out, only takes about an hour each year, and you could do everything online – not bad considering all the perks and tax advantages the solo 401k gives you. This guide will […]
OVERVIEW & FAQ A solo 401k loan lets you tap into your solo 401k account and borrow money from your own nest egg. Essentially, you’re lending money to yourself, with the requirement to pay it back. It doesn’t sound like a great deal, but it can make a lot of sense in certain cases. Plus, a solo […]
OVERVIEW The solo 401k has strict rules around withdrawals and the penalties could be steep if you break them. The good news is that the withdrawal guidelines are fairly straightforward and easy to stay in compliance with. And in emergency situations, there are certain exceptions where you could withdraw early with no penalties. Some solo 401k plans […]
One of the most common questions around solo 401k eligibility is: Can I contribute to a solo 401k if I also receive a 401k plan at my day job? As long as you meet the eligibility requirements of a solo 401k, you’re allowed to contribute to both plans if you receive a 401k at your […]
If you were late in starting to save for your retirement, catch-up contributions exist to let you “catch up” by giving you slightly higher contribution limits each year. If you’re 50 years of age or older, you’re allowed to contribute more money into your solo 401k than is typically allowed. This is also helpful due […]
