Watch: Critical deadline information for establishing your Solo 401(k) before December 31st

What MUST Be Done by December 31, 2025

• Establish the Plan Documents: Sign up and obtain your IRS-approved Solo 401(k) plan documents
• Lock in Contribution Options: Preserve your ability to make all types of contributions for 2025
• Start the Tax Credit Clock: Begin the three-year eligibility period for SECURE ACT tax credits (up to $1,500 total)

What CAN Wait Until 2026

• Opening Brokerage Accounts: You have until your business tax return deadline (including extensions)
• Making Contributions: Employee deferrals, employer contributions, and Mega Backdoor Roth contributions can be made in 2026
• Transferring Assets: Moving funds from existing retirement accounts can happen after year-end
• Determining Contribution Amounts: You don’t need to know how much you’ll contribute by December 31st

Do I need to open investment accounts by December 31st?

No. You only need to establish the plan documents by year-end. Investment accounts at institutions like Fidelity and Schwab among others can be opened anytime in 2026, up until your business tax return deadline (including extensions).

Do I need to make contributions by December 31st?

No. Unlike employees with workplace 401(k) plans who must make deferrals by year-end, self-employed individuals have extended deadlines. As long as the plan is established by 12/31/2025 all types of 2025 solo 401k contributions—employee deferrals, employer contributions, and Mega Backdoor Roth contributions—can be made anytime until your business tax filing deadline, including extensions.

I already have a basic Solo 401(k) at Fidelity/Schwab/Vanguard. Can I upgrade?

Yes! This is extremely common. The process is called a plan restatement. Think of it like a “cut and paste” operation—you’re replacing your existing basic plan documents with advanced plan documents that support features like the Mega Backdoor Roth, loans, and tax credits.

How long does it take to establish a Solo 401(k) with My Solo 401k Financial?

Same business day. Unlike traditional providers that can take weeks, My Solo 401k Financial prepares your IRS-approved plan documents within the same business day you submit your application. This means you can meet the December 31st deadline even if you’re starting at the last minute.

What if I don’t know how much I earned yet?

That’s perfectly fine! You don’t need to know your contribution amount by December 31st. You’re simply establishing the framework (the plan documents) that gives you the option to make contributions. Once you finalize your income in early 2026, you can determine your contribution amounts and make them before your tax filing deadline.

When are employer contributions due?

Contrary to popular myth, employer profit-sharing contributions do not need to be made by January 15th. As long as your plan is established by December 31st, all contribution types—including employer contributions—can be made by your business tax return deadline, including any timely filed extensions.

Phase 1: Before December 31, 2025 (Required)

1. Complete the Quick 1-Minute Solo 401k Application (10 Questions): Provide basic information about your self-employed business—business structure, income type, whether you have a spouse in the business, etc.
2. Submit Payment: Initial fee is $650 including $525 establishment fee and first $125 annual fee – starting 12 months later we charge our $125 annual fee to cover the 2nd year.
3. Receive Your Plan Documents (Same Business Day): My Solo 401k Financial drafts your IRS-approved plan documents and delivers them via secure portal
4. Download and Review: Access your customized plan documents, including all forms needed for tax credits

Phase 2: In 2026 (Flexible Timing)

1. Obtain an EIN for Your Plan: My Solo 401k Financial handles this for you as part of onboarding
2. Sign and Return Required Documents: Upload completed signatures via secure portal
3. Complete Next Steps Questionnaire: Quick one-minute form to indicate where you want to open accounts – Select your bank or brokerage of choice (Fidelity, Schwab, local credit union, etc.)
4. Open Your Accounts: My Solo 401k Financial pre-fills institution paperwork to streamline the process
5. Fund Your Solo 401(k): Make contributions before your business tax filing deadline (including extensions)

You ARE Eligible If:

• You have self-employment income (reported on Schedule C, K-1, or through an S-Corp/LLC)
• You are a sole proprietor, freelancer, consultant, or independent contractor
• You own a business with no full-time W-2 employees (other than yourself and/or your spouse)
• You have a side business in addition to W-2 employment elsewhere

You Are NOT Eligible If:

• You have full-time W-2 employees working for your business (other than your spouse)
• You only have W-2 income with no self-employment component

Don’t let this opportunity slip away. Establishing your Solo 401(k) takes minutes, and you’ll have the entire next year to open accounts and make contributions.