Solo 401k

2026 Solo 401(k) Income Thresholds: $252,317.72 for the $72,000 Max Direct Answer: The 2026 Solo 401(k) income thresholds for sole proprietors depend on the contribution type. A sole proprietor with no day-job plan needs $252,317.72 of Schedule C line 31 net income for the $72,000 pre-tax maximum. A $72,000 Mega Backdoor Roth contribution requires $77,473.32 […]

S Corp Solo 401(k): $190,000 W-2 Maxes Pre-Tax, $72,000 Maxes Roth Direct answer An S Corp Solo 401(k) owner under age 50 needs $190,000 of W-2 wages to make the full $72,000 pre-tax contribution for 2026. The requirement rises to $288,000 when a day-job plan has already used the $24,500 employee limit. Only $72,000 of […]

Solo 401k Business Entity Change: Same $72,000 Limit, Different Math Direct Answer A Solo 401k business entity change does not require a new plan. When a sole proprietorship becomes an LLC taxed as an S corporation, the new entity becomes the plan sponsor and the existing plan is amended (i.e. restated). The plan name, plan […]

Solo 401k Loan: Borrow Up to $50,000 to Pay Off 25% APR Card Debt A Solo 401k loan lets a self-employed owner borrow the lesser of 50% of the plan balance or $50,000 to pay off credit card debt. The owner repays the plan over five years. The interest, set at the prime rate plus […]

Solo 401(k) at Any Age: $72,000 Under 50, $83,250 at 60–63 Direct Answer: A Solo 401(k) lets self-employed owners with no full-time non-owner, non-spouse employees contribute up to $72,000 for 2026. Owners age 50 to 59, or 64 and older, add an $8,000 catch-up, for up to $80,000. Owners age 60 through 63 add an […]

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 […]