The Solo 401k Benefits

A solo 401k comes wit the following benefits:

401(k)/Profit-sharing plan for your business

For 2019, the solo 401k plan allows you to stash away money tax-deferred or tax-free (Roth Solo 401k) up to $56,000  or $61,000 if age 50 or over. For 2020, the contribution limit increased to $57,000 or $63,500 if age 50 or over.

Unlimited investment options

Put your hard-earned money to work! At no additional charge, you can choose a bank or brokerage account to establish a checking account for your Solo 401k, which will be used to make all alternative investment purchases (e.g., real estate, private investments, private loans, etc.) by simply writing a check, or by wire.

In addition, should you choose to also invest in stocks and mutual funds, we will provide you with the necessary account-establishment instructions with your Solo 401k plan document at the end of the sign-up process and will  facilitate the establishment of a brokerage account for investing in stocks and mutual funds. You can also choose your own discount broker such as: Schwab,  E-TradeFidelity and TD Ameritrade, to name a few.

Solo 401k Participant Loan Option

The solo 401k plan allows for personal loans. This is essential for growing companies.

The maximum amount that the Solo 401k plan can permit as a loan is (1) 50% of your vested account balance, or (2) $50,000, whichever is less.

For example, if a participant has an account balance of $60,000, the maximum amount that he or she can borrow from the account is $30,000.

Hardship withdrawal choice

The solo 401k plan gives you the option to withdraw from your Solo 401k under certain conditions, should you find yourself in financial hardship. Please contact us at or at 800-489-7571 if you would like more information on this option.

Compliance-approved plan documents

You will also receive plan documents, which are compliant with government regulations, and IRS Determination letter confirming that this is a 401k plan that meets the requirements of a qualified plan .

Power to amplify tax-deductible contributions

Amplify your tax-deductible contributions through your Solo 401k, up to $56,000 to be exact. Refer to the Contributions section for more details.

Access to more services

If your account exceeds $250,000, we can prepare your Form 5500-EZ at no additional cost.

Form 1099 Filing

Each time you take a disbursement from your Solo 401k, you need to prepare a Form 1099 to report to the IRS  the disbursement from the plan. We prepare this form on your behalf should you need this service.


SOLO 401(K)