Archive for the ‘Solo 401K Rules’ Category

What is the Solo 401(k) Solution?

May 3rd, 2018

The Solo 401(k) Plan, also known as the Individual 401(k) or Self-Directed 401(k) Plan, is an IRS approved type of qualified retirement plan which is suited for business owners who do not have any employees, other than themselves and perhaps their spouse. The Solo 401(k) plan is not a new type of plan. It is […]

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What’s the Difference Between a Solo 401(k) and a Regular 401(k)?

April 25th, 2018

Essentially, a Solo 401(k) plan just means a 401(k) plan adopted by an employer or business which has no full-time employees other than he owner(s) or their spouses. A Solo 401(k) plan is much easier and far more cost effective for a business to adopt a Solo 401(k) plan than a 401(k) plan subject to […]

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What Types of Business Entities Are Best When Using a Solo 401(k)?

April 18th, 2018

The Solo 401(k) plan may be adopted by an individual sole proprietor, or any other business entity, such as an LLC, corporation, or partnership.  In general, in order to be eligible to benefit from the Solo 401(k) Plan, one must meet just two eligibility requirements: (i) The presence of self-employment activity. (ii) The absence of […]

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Who Benefits the Most From Using a Solo 401k Plan?

April 12th, 2018

Any sole proprietor or small business owner that wishes to make high annual tax-deferred or Roth contributions, as well as have the ability to borrow up to $50,000 from the plan tax-free. Under the 2018 Solo 401(k) contribution rules, a plan participant under the age of 50 can make a maximum annual employee deferral contribution in the […]

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5 Reasons Why Every Self-Employed Individual Should Establish a Solo 401(k) Plan

April 9th, 2018

A Solo 401(k) plan is not a new type of retirement plan. It is a traditional 401(k) plan covering only one employee. In general, in order to be eligible to establish a solo 401(K) plan, one must be self-employed or have a small business with no full-time employees (over 1000 hours during the year) other […]

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Not All Solo 401(k) Plans Are The Same

March 26th, 2018

Here’s the latest article by Adam Bergman that originally appeared on Forbes.com – A Solo 401(k) plan is not a new type of retirement plan. It is a traditional 401(k) plan covering only one employee. In general, in order to be eligible to establish a Solo 401(k) plan, one must be self-employed or have a […]

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When Using a Solo 401k Plan, When Does UBTI Come Into Play?

February 27th, 2018

In general, most passive investments that your Solo 401(k) Plan might invest in are exempt from UBTI. Some examples of exempt type of income include: interest from loans, dividends, annuities, royalties, most rentals from real estate, and gains/losses from the sale of real estate. When an exempt organization such as an 401(k) Plan undertakes any […]

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Are You Eligible to Open an Individual 401(k) Plan for 2018?

February 6th, 2018

A Solo 401(k) plan, also known as an Individual 401(k) plan, is well suited for businesses that either do not employ any employees or employee certain employees that may be excluded from coverage. A Solo 401K plan is perfect for any sole proprietor, consultant, or independent contractor. To be eligible to benefit from the Solo […]

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