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COLLECTED WISDOM™ on Solo 401k Retirement Plans

The self-employed used to say that 401k plans weren't in tune with their needs-but thanks to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), they're now singing their praises. While EGTRRA did not explicitly create a new type of retirement plan, it made a number of constructive changes to existing laws governing 401k plans. In doing so, the legislation had an unintended benefit -- one that caters to the distinctive needs of small businesses where the owner or owners are the only employees -- increased contribution limits.

Here is information to help you understand and pursue a Solo 401k plan.

This archive contains not only the most current material on the topic, but also older items that are still relevant, provide background, perspective or are germane to the topic.

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What Is a Solo 401k Plan?

Abstract: Actually, there is no such thing as a "solo 401k" plan. You won't find it in the Internal Revenue Code. Solo 401k is a marketing term that some plan providers, like financial institutions and recordkeepers, have created to explain what is really a tax qualified 401k plan that meets the IRS definition of a "one-participant plan."

Source: Consultrms.com, February 2018

Choosing Individual 401k Plans: All That Glitters Is Not Gold

Abstract: Individual 401k plans or Solo 401k plans have gained popularity over the last couple years, especially among owner-only businesses and self-employed professionals. Did you ever wonder why some institutions offer Solo 401k plans free of cost whilst others charge a fee?

Source: 401khelpcenter.com, January 2017

Shelter Additional $1,000 With New Solo 401k Contribution Limits

Abstract: The solo 401k contribution limits for 2017 have increased. Author shows how an extra $1,000 can make an important difference in your retirement account balance over time.

Source: 401khelpcenter.com, November 2016

How to Maximize Your Tax Savings With a Solo 401k

Abstract: When used efficiently, a Solo 401k could help you increase your retirement savings by up to ten times of the regular IRA contributions.

Source: 401khelpcenter.com, October 2016

Going Solo 401k

Abstract: Self-employment isn't for everyone, including knowing your retirement plan options. When considering your options solo 401k plan might be for you. Here is an overview.

Source: Tristarpension.com, October 2016

Solo 401k is a Retirement Plan Alternative for the Self-Employed

Abstract: A TD Ameritrade survey revealed that 28% of the self-employed professionals do not save anything at all for retirement, even though there are several available retirement plans for the them. One solution is the 'solo 401k.' Article provides a good basic overview of this type of plan.

Source: 401khelpcenter.com, March 2016

How Much to Contribute to Your Solo 401k in 2016

Abstract: How much you should save for retirement can depend on many factors, such as your current savings, any debt, your income, and your retirement goals. The more you can afford to save, the faster you will reach your retirement goals.

Source: 401khelpcenter.com, November 2015

Save On Taxes This Year With a Solo 401k for Small Businesses

Abstract: Tax planning is an important process for most of us, but even more so for small business owners and self-employed professionals. One of the popular strategies for small business owners is the Solo 401k plan.

Source: 401khelpcenter.com, September 2015

Solo 401k Plan Owners Need to Be Aware of Three Important Events

Abstract: As the plan trustee of a Solo 401k, you are responsible to keep the plan in compliance with the IRS regulations. Usually, the task of a Solo 401k plan trustee can be quite simple. However, as the plan owner, you will need to stay on top of three events.

Source: 401khelpcenter.com, April 2015

Loans From Solo 401k Plans Holding Steady

Abstract: Even as the economy improves, the pace of loans taken from Solo 401k plans is holding steady.

Source: Benefitspro.com, March 2015

Maximum Amount a Self-Employed Person Can Contribute to an Owner-Only 401k Plan

Abstract: Answer to the question, "What is the maximum contribution my client, who is self-employed and unincorporated, can make to his owner-only 401k plan for 2013?"

Source: Napa-net.org, August 2013

Solo 401k a Great Tool for Self-Employed

Abstract: If you are a freelancer, consultant or other self-employed person, the government offers a $50,000 tax break that could help secure your retirement. The solo 401k -- also known as the individual 401k -- was created by the Economic Growth and Tax Relief Reconciliation Act of 2001. For the 2012 tax year, it allows businesses with only one full-time employee-owner to contribute up to $50,000 to the plan ($55,500 for those 50 and older).

Source: Bankrate.com, September 2012

Self-Directed Retirement Options: SEP IRA v. Solo 401k

Abstract: At first glance, the two platforms -- the SEP IRA and Solo 401k -- appear very similar, but on a closer look, the Solo 401k actually has a number of distinct advantages.

Source: Nuwireinvestor.com, June 2012

Solo 401k Contributions

Abstract: If you have a home business, one way you can lower your taxable income for the year is to open a solo 401k and make a contribution.

Source: Personaldividends.com, December 2010.

Consider a Solo 401k

Abstract: One of the major issues facing the self-employed is how to save for their retirement. If you work for a company you likely have a 401k plan or other retirement savings vehicle available to you. If you are a self-employed you will need to establish your own retirement savings program. One option to consider is the Solo 401k.

Source: Chicago Financial Planner, September 2010.

Launch a Solo 401k for Small-Business Clients

Abstract: Many small-business clients run their operation as a one-person show. Once the business has turned the corner, the owner can focus on setting aside more funds for retirement. And the more he or she can save each year, the merrier the client will be. Strategy: Point out the benefits of a solo 401k plan.

Source: Accountingweb.com, June 2010.

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