Yes. A self-directed solo 401k is a 401k but for the self-employed. Therefore, just like traditional 401k plans (aka a 401k for full time employers), the solo 401k won’t be qualified if it appears from facts and circumstances that it was opened as a temporary program. The solo 401k may be considered temporary if the self-employed business abandons the plan within a few years after establishment unless the self-employed business was closed. Contributions are not required to be made to the solo 401k every year, and the self-employed business owner does have the right to close the solo 401k or to stop making contributions without changing the plan’s status as a permanent program. Treas. Reg. 1.401-1 (b)(2)
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We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
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