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 […]
DBK Strategy: Max Contributions to a Solo 401(k) & a Cash Balance Plan (DBP) Direct Answer: Yes, a self-employed business can run the DBK strategy — a Solo 401(k) combined with a cash balance (defined benefit) plan — in the same year. For tax year 2026, the Solo 401(k) overall limit under IRC §415(c) is […]
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 […]
Solo 401(k) Brokerage Account: Fidelity vs. Schwab for 2026 Direct Answer: A Solo 401(k) brokerage account can be opened at Fidelity, Charles Schwab, Interactive Brokers, or TradeStation, but not at T. Rowe Price for a third-party plan. Fidelity supports direct ACH bank linking for contributions; Schwab requires mailed checks unless a personal Schwab account is […]
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 […]
2025 Mega Backdoor Roth Deadline: September 15 or October 15, 2026 Direct Answer: The 2025 Mega Backdoor Roth deadline to open a Solo 401(k) and make the voluntary after-tax contribution is September 15, 2026 for S-corporations and partnerships, and October 15, 2026 for sole proprietorships and C-corporations. The overall 2025 contribution limit is $70,000 under […]
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 […]
Self-Directed IRA Prohibited Transactions: Why $100K in Wine Means a 1099-R Direct Answer: Self-Directed IRA prohibited transactions are governed by IRC Section 4975(c), which bars self-dealing between a self-directed IRA and “disqualified persons” such as the account owner, spouse, parents, and children. Separately, self-directed IRAs may never hold life insurance contracts, S corporation stock, or […]
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 […]
