Solo 401(k)
Can I Use My 401(k) to Buy a House?
Generally, there are two options when using a 401(k) to buy a house: taking a loan (if the plan allows them) or taking a distributions from the plan.
What is a Solo 401(k)?
A Solo 401(k), also known as an Individual 401(k), is a retirement savings plan designed specifically for self-employed individuals and small business owners with no full-time employees other than themselves, their spouse or other business owners. This plan allows for both employer and employee contributions, enabling higher annual contribution limits compared to other retirement plans. A Solo 401(k) can also offer a Roth option, loan provisions, and the ability to invest in a wide range of assets, including stocks, real estate, and precious metals through the self-directed structure. It’s a powerful tool for maximizing retirement savings while maintaining flexibility and control.
Why Choose Us as Your Solo 401(k) Provider?
IRA Financial is a specialized Solo 401(k) provider. When you choose us to manage your Solo 401(k), you get expert support, low fees, and a seamless setup process to help you build wealth in a tax-efficient way.
No Hidden Fees
Flat, transparent pricing with no asset-based costs.
Expert Support
Live chat available 8AM–6PM Central Time.
Industry Expertise
Led by Solo 401(k) specialists.
24,000+ Clients
Serving investors in all 50 states.
Checkbook Control
Invest without custodian approval.
Dedicated Focus
100% Self-Directed Retirement solutions.
Solo 401(k)
- No asset value, transaction, or asset purchase fees
- Free Solo 401(k) plan document updates as required
- Free Solo 401(k) plan tax and consulting services
- Free preparation and filing of IRS Form 5500-EZ
- Borrow up to $50,000 tax free
- Mega Backdoor Roth option included
- Guaranteed IRA audit protection.
Pricing Details
$999
setup fee
$399
annually
How to Start a Solo 401(k) Plan
Setting up a Solo 401(k) account is straightforward. Follow these steps to set up your plan and begin investing.
The Benefits of a Solo 401(k)
Better tax advantages
Better tax advantages
You can choose between two different Solo 401(k) plans:
- Traditional Solo 401(k) → Tax-deferred growth with pre-tax contributions (pay taxes later).
- Roth Solo 401(k) → Tax-free growth with after-tax contributions (pay taxes now, withdraw tax-free).
Loan opportunities
Loan opportunities
A Solo 401(k) lets you borrow up to $50,000 (or 50% of your account balance, whichever is lower) tax and penalty free.
Higher contribution limits
Higher contribution limits
With a $70,000 limit ($77,500 if age 50+ or $81,250 between the ages of 60 & 63), you can save more each year than with a Self-Directed IRA or SEP IRA.
Broader investment choices
Broader investment choices
Move beyond stocks and bonds to invest in alternative assets like real estate, cryptocurrency, private equity, precious metals, and more, expanding your opportunities for growth.
Choose where and how to invest without relying on traditional brokerage firms, giving you full authority over your portfolio.
Direct investment control
Direct investment control
Act quickly on investment opportunities with streamlined execution, reducing delays that can impact returns.
Creditor protection
Creditor protection
Solo 401(k) funds are protected under ERISA, making them safer from creditors than many other accounts.
Our Solo 401(k) vs Other Providers
Many Solo 401(k) providers charge asset-based fees, limit investment choices, or don’t offer full checkbook control. We provide a flat-fee plan with full investment flexibility.
| IRA Financial | Other Providers | |
|---|---|---|
| Flat Annual Fee | Yes | No |
| $0 Account & Transaction Fees | Yes | No |
| $0 Admin & Processing Fees | Yes | No |
| Expert-Guided Investments | Yes | No |
| Guaranteed IRS Audit Protection | Yes | Yes |
| Annual Tax Consulting | Yes | No |
| Annual Reporting & Filing Service | Yes | No |
Book a Consultation
Schedule a free consultation with a member of our team to explore how opening a self-directed retirement account can unlock your ability to invest tax-free in a variety of alternative assets.
See What Our Clients Have to Say
What Alternative Assets Can You Invest in with a Solo 401(k) Plan?
A Solo 401(k) account gives you the flexibility to invest beyond traditional stocks and mutual funds, allowing for greater growth potential.
Real Estate
Residential, commercial, raw land, and rental properties.
Cryptocurrency
Bitcoin, Ethereum, and other digital assets.
Precious Metals
Gold, silver, and other IRS-approved metals.
Tax Liens & Deeds
Acquire property liens for potential returns.
Private Equity
Invest in startups, private companies, and venture capital.
Private Placements
Invest in a non-public company through the sale of securities.
Solo 401(k) FAQs
Got questions? We’ve got answers. Below are the most common questions about Solo 401(k) plans, including eligibility, contributions, investment options, and tax benefits.
What is a Solo 401(k)?
A Solo 401(k) is a retirement plan for self-employed individuals and business owners with no full-time employees. It offers:
- The ability to take a $50,000 tax-free loan
- Higher contribution limits than IRAs ($70,000 for 2025 or $77,500 if 50+).
- Pre-tax (Traditional) or after-tax (Roth) contribution options.
- Checkbook control, allowing you to invest without custodian approval.
Who is eligible for a Solo 401(k)?
To be eligible for a Solo 401(k), you must:
- Be self-employed or own a business with no full-time employees.
- Have self-employment income (freelancer, contractor, business owner, etc.).
How much can I contribute to a Solo 401(k)?
For 2025, the total contribution limit is:
- $70,000 if under 50
- $77,500 if 50+
- $81,250 between 60 and 63
This includes both employee deferrals (up to $23,500) and employer profit-sharing contributions (up to 25% of compensation).
What can I invest in with a Solo 401(k)?
With checkbook control, you can invest in:
- Real Estate – Buy rental properties, raw land, or commercial real estate.
- Cryptocurrency – Invest in Bitcoin, Ethereum, and other digital assets
- Private Equity – Fund startups, private businesses, or venture capital
- Tax Liens & Deeds – Purchase tax lien certificates for potential returns.
- Precious Metals – Buy IRS-approved gold, silver, and platinum.
Prohibited investments include collectibles and transactions with disqualified persons (e.g., yourself, family members).
Can I take a loan from my Solo 401(k)?
Yes! A Solo 401(k) loan allows you to borrow:
- Up to $50,000 (or 50% of your balance, whichever is lower)
- Tax-free and penalty-free
- Must be repaid within 5 years
This is a huge advantage over an IRA, which does not allow loans.
Do Solo 401(k)s have Required Minimum Distributions (RMDs)?
Yes, you must take required minimum distributions from a traditional Solo 401(k) starting at age 73, even if you’re still working. Beginning in 2024, you do NOT need to take RMDs from a Roth 401(k) during your lifetime.
Ready to plan for your future?
Take control of your retirement by investing in alternative assets like real estate, cryptocurrency, businesses, and more. Start creating wealth today by opening an account.
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