OVERVIEW There are only two eligibility requirements for a solo 401k: Business owners with any type of business entity can open a solo 401k as long as they generate income and they don’t have employees. But what happens if you decide to hire a full-time W-2 employee, and you’re no longer self-employed? Can you keep your account, or […]
A 401k is an employer-sponsored retirement plan. Without an employer, you cannot participate in a traditional company 401k plan. However, there are some strong alternatives that offer even better benefits and tax-advantages than a normal 401k. Perhaps you’re already employed, but your company just doesn’t have a 401k plan that they offer to employees. 401k […]
Steps to close your solo 401k plan A solo 401k requires that you have self-employment activity with no 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 (excluding your spouse). If you do end up hiring an employee, you […]
Most 401k plan providers will offer two different contribution options: Traditional pre-tax and Roth post-tax. Traditional pre-tax contributions are funded with pre-tax income, give you a tax deduction for the year, and grow tax-deferred. When you withdraw in retirement, it gets taxed as regular income. Roth post-tax contributions are funded with post-tax income, and don’t […]
OVERVIEW A rollover is the fastest, most effective way to fund your solo 401k account. You’re allowed to rollover funds from almost any retirement account, and there are no limits on how much you can rollover. If you’re considering a solo 401k rollover, let’s go through how it works and why you should consider one. […]
The IRS lets you invest in almost any asset class with a solo 401k. However, in order to make investments into alternative assets like real estate, crypto, and private equity, you need full checkbook control over your investment account. Without a self-directed solo 401k, your investment options are limited to whatever your plan provider offers in […]
Roth retirement accounts have a 5-year rule, but the rules are slightly different for a Roth IRA and a Roth 401k (or Roth solo 401k). The Roth IRA lets you withdraw your contributions from your account at any age without penalty, even if you’re not 59½ years of age yet. To withdraw earnings from your account, […]
An IRA is a tax-deferred retirement account for individuals. Depending on the type of IRA you choose, contributions could be tax-deductible or withdrawals could be tax-free. There are three main IRAs that you could consider rolling over into a solo 401k. There’s also the Roth IRA, which allows Roth contributions: you make contributions with after-tax dollars, […]
