What is a Solo/Owner 401(k) Plan?

Solo/Owner 401(k) Plans are 401(k) plans for business owners who have no employees eligible for 401(k) at this time. Your business can be a sole-proprietorship, partnership or a corporation – it does not matter – as long as you have no employees who work more than 1,000 hours each year.

Our Solo/Owner 401(k) Plan offers the following provisions:

Plan Setup Small business owner with no employees other than spouse or partner
Plan Trustee and Plan Administrator Business owner (and their spouse or partner if applicable)
Salary Deferrals From $0 to IRS maximum ($18,500, plus $6,000 if older than 50) in 2019
Employer Contributions Up to 25% of salary (20% for self-employed), with a maximum of $53,000. $53,000 is the total contribution limit for deferrals and employer contributions
Contribution Flexibility Annual contributions are never required. Each year, contributions can range from $0 to the maximum permitted under current laws.
Unlimited Investment Options It’s your money, you choose where to invest it.
Rollovers Permitted from qualified plans
Loans Optional. You may borrow from your 401(k) with interest (which is paid back into your account without penalty). Minimum loan is $1,000; maximum is $50,000 or 50% of the account balance
Roth These after-tax contributions can be made with the same limits as traditional 401(k) deferrals ($18,000, plus $6,000 if older than 50) in 2016
Annual Government Filings Form 5500-EZ (if assets are less than $250,000)
Please note the plan document will allow all employees 21 years of age to be eligible to enter the Plan immediately for deferrals and employer contributions. If you add any employees in the future, these conditions will apply.