Learn More About Solo 401(k) Plans

The Solo 401(k) plan is a qualified plan for those who own or run a business which has no employees. A Solo 401(k) plan is perfect for any sole proprietor, consultant, or independent contractor. A Solo 401(k) plan offers the same abilities as a Self Directed IRA LLC, but without having to hire a custodian or create an LLC.

  • Invest into private companies, precious metals, real estate, and virtually anything else.
  • Use your Solo 401(k) plan to start a new business or franchise without incurring taxes or penalties.
  • Borrow money from your Solo 401(k) plan for any purpose.
  • Make new contributions (up to $54,500 per year).

The Solo 401(k) plan offers several unique benefits above and beyond the Self Directed IRA LLC:

  • No need to hire a custodian. While IRA & 401(k) plans are both technically trusts, only IRAs require a bank or trust company to serve the role of trustee. As a qualified plan, a 401(k) carries no restrictions on who can serve as trustee. For a self directed plan, naming yourself as trustee offers simplicity, reduced cost, and the comfort of not needing to place trust in another person or financial institution.
  • No need to establish an LLC. You have checkbook control built in without having to form an LLC. An LLC is a state granted privilege, and often carries state requirements for fees, filings, and taxes. A Solo 401(k) trust is not a state granted entity and does not produce the administrative burdens of an LLC.
  • Maximum contribution limits nearly 10X higher than the IRA. Contribute up to $49,000 per year or $54,500 if you are over age 50. If your spouse is involved in the business, they can contribute an additional $49,000 (or $54,500) per year.
  • Borrow money from your retirement funds. Take a loan up to $50,000 (or 50% of account value) for any reason. The loan must repaid over a term of up to 5 years.
  • Roth subaccount with no income restrictions. Your Solo 401(k) documents will be prepared to allow for a Roth subaccount which can accept Roth-type contributions. Roth funds grow tax free and aren’t taxed when distributed later in retirement years. Unlike a Roth IRA, the Designated Roth Account of a Solo 401(k) doesn’t place restrictions on those with high incomes.
  • UBIT/UBTI/UDFI Exempt. Generally retirement accounts do not pay income or gains taxes, but when an IRA owns real estate that carries mortgage debt, a special trust tax is triggered. This is called UDFI tax (Unrelated Debt Financed Income) and is a type of UBTI tax (Unrelated Business Taxable Income). Section 514 of the Internal Revenue Code exempts Solo 401(k) plans from UDFI.

Our Solo 401(k) plan establishment services include:

  • Adoption Agreement
  • Basic Plan Document
  • EGTRRA Amendment
  • Summary Plan Description
  • Trust Agreement
  • Appointment of Trustee
  • Action by Board of Directors
  • Beneficiary Designation
  • Loan Procedure
  • Loan Documentation
  • Election Not To Participate
  • Transfer Request Forms for incoming funds transfers
  • Newly assigned Employer Identification Number from the IRS
  • IRS Determination letter stating that this is a Prototype Plan that meets the requirements of a qualified plan

We will also assist you in opening your bank trust account(s) and executing your incoming transfers from existing funds. At this time, our customers have had a 100% success ratio in opening their trust accounts and completing their transfers.

IRA Financial Group has been trusted choice for thousands of Self Directed IRA LLC and Solo 401(k) owners. Let us set up your customized retirement solution quickly, professionally, and economically. For immediate free tax and retirement consultation with one of our IRA Tax Specialists, call us today at 800-IRA-0646.

The IRA Financial Group is the leading facilitator of Self Directed IRA LLCs and Solo 401(k) plans. The IRA Financial Group is the only Self Directed IRA LLC and Solo 401(k) Facilitator that:

  • Was created by top law firm Attorneys and Wall Street bankers.
  • Offers the Best Price Guarantee – our fees are up to 65% less than companies offering similar services and…we back that up with a Best Price Guarantee.
  • Offers customized Self Directed IRA LLC and Solo 401(k) plans that are IRS compliant and which are personally customized by one of our onsite tax and ERISA Attorneys, who have worked at some of the largest law firms in the United States, including White & Case LLP and Dewey & LeBoeuf LLP.

Talk to one of our expert IRA Professionals by calling We’ll help you get started investing in 14 days or less.

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