Solo 401k Loan Rules: 10 Myths That Could Cost You $50,000 Direct Answer A Solo 401k loan lets self-employed individuals borrow up to 50% of their plan balance or $50,000 — whichever is less — without income taxes or early-withdrawal penalties, provided strict IRS repayment rules are followed. Discount brokerages like Fidelity and Schwab do […]
Solo 401(k) End Triggers: 7 Changes That Could Force Closure or Conversion What life or business changes can end a Solo 401(k) plan? Direct Answer A Solo 401(k) is reserved exclusively for owner-only businesses. Seven common life and business changes — hiring a full-time W-2 employee, adding part-time workers who cross the 500-hour threshold, hiring […]
Fidelity Solo 401(k)’s Free Plan: 5 Traps That Can Cost Solopreneurs $1,500+ in Tax Credits Alone What are the hidden problems with Fidelity’s free Solo 401(k) plan? Direct Answer The Fidelity Solo 401(k) free plan contains five structural traps: a Roth addendum that is not automatically enabled (and in-plan Roth conversions are not supported at […]
SEP IRA vs Solo 401(k): 10 Traps That Cost Self-Employed Owners Up to $72,000 a Year SEP IRA vs Solo 401(k) for self-employed: which plan wins on Roth, loans, real estate, and tax credits? Direct Answer: In a SEP IRA vs Solo 401(k) comparison, the Solo 401(k) wins on every major feature for self-employed business […]
Solo 401(k) Plan Document Is Not a Commodity: Unlock the Mega Backdoor Roth and Keep Your Brokerage Can I keep my Fidelity or Schwab account and still get the Mega Backdoor Roth with a Solo 401(k)? Yes — and the reason is the plan document, not the brokerage account. A Solo 401(k) plan document governs […]
Solo 401(k) Participant Loan: How to Borrow Up to $50,000 From a Rolled-Over Former Employer Plan By George Blower, Retirement Accounts Attorney, My Solo 401k Financial September 1, 2026 Can I borrow from my old 401(k) after rolling it over to a Solo 401(k)? Direct Answer Former employer 401(k) plans prohibit new participant loans once […]
Morgan Stanley Solo 401(k) Plans End December 31, 2026: Your Action Plan Published August 30, 2026 | Based on the My Solo 401k Financial live webinar of August 27, 2026 | By George Blower, Retirement Accounts Attorney Direct Answer Morgan Stanley Solo 401(k) plan holders must obtain replacement plan documents before December 31, 2026. Morgan […]
Are Democrats Moving to Ban Trump Accounts? The $10M Mega IRA Crackdown Explained Watch: How the new Trump Accounts could eventually collide with a proposed $10 million retirement account cap A newborn with a Trump Account could, decades from now, run straight into a proposed $10 million cap on retirement account balances. That is not […]
Does Schwab Allow 401k Loans? Watch: Why Schwab’s basic plan blocks 401k participant loans — and how solopreneurs unlock them while keeping their accounts at Schwab Quick Answer: No. Schwab’s own basic Solo 401k plan document does not allow 401k participant loans. Like virtually every discount brokerage, Schwab has made the business decision not to […]
Solo 401k Withdrawal Hack: How to Avoid the Mandatory 20% Withholding Watch: How to legally sidestep the mandatory 20% federal withholding on a Solo 401k distribution If you’ve ever needed a lump sum of cash from your Solo 401k — for a business opportunity, an emergency, or anything else — you’ve probably run into an […]
