The Solo 401K plan is an IRS approved 401k for the self-employed. The Solo 401K Plan is a qualified retirement plan that was designed specifically for the self-employed or the small business. The Solo 401K Plan is perfect retirement plan for any self-employed individual or small business owner with no employees. The 401K Plan for the self-employed can be adopted by any type of business, including a sole proprietor, limited liability company, partnership, S Corporation, and C Corporation.
The Solo 401k Plan is unique and so popular because it is designed explicitly for small, owner only business. There are many features of the Individual 401K plan that make it so appealing and popular among self employed business owners.
High Retirement Contributions: With a Solo 401K 401K, the plan participant can make annual contributions up to $50,000 annually with an additional $5,500 catch up contribution for those over age 50.
Loan Feature: With a Solo 401k Plan, a plan participant may borrow up to $50,000 or 50% of their account value (whichever is less) for any purpose. Note -the loan has to be paid back over a five year period at least quarterly at a minimum prime interest rate (you have the option of selecting a higher interest rate).
Self-Directed 401K: By using a Solo 401K Plan with checkbook control, as trustee of the Solo 401K Plan you can make traditional (stocks, mutual funds, etc) as well as non-traditional investments (real estate, precious metals, tax liens, private businesses, etc) tax free and without requiring the custodian consent. In addition, the Individual 401K Plan account can be opened at any local bank or credit union. No longer will you be restricted from making real estate and other IRS approved investments with your 401(k) funds. With the self directed 401K Plan, you will have checkbook control over your retirement funds so you can purchase real estate, precious metals, and much more tax-free!
Roth Feature: The Solo 401K plan contains a built in Roth sub-account which can be contributed to without any income restrictions.
Hassle-Free Administration: The Solo 401K Plan is easy to operate. There is generally no annual filing requirement unless your Plan exceeds $250,000 in assets, in which case you will need to file a short information return with the IRS (Form 5500-EZ).
The 401K Plan for the self-employed is an IRS approved plan that was designed specifically for the self-employed. Learn why the Individual 401K Plan has become the most popular retirement and investment vehicle for the self-employed.