Account Type
Solo 401(k)
A Solo 401(k) is similar to an employer-sponsored 401(k), except the account holder must be self-employed with no other employees and acts as both the employee and employer.
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Our office will be closed on Monday, 9/2, in observance of Labor Day. We will reopen on Tuesday, 9/3.
Account Type
A Solo 401(k) is similar to an employer-sponsored 401(k), except the account holder must be self-employed with no other employees and acts as both the employee and employer.
At a Glance
Getting Started
For business owners who are looking to adopt a prototype Solo 401(k) plan for themselves, and they plan on holding their assets at NDTCO, this option incorporates both the adoption plan rental and the bookkeeping services below.
This plan is for business owners looking to adopt a prototype (pre-approved by the IRS) plan for themselves only and want the plan administration to occur independently of NDTCO. Spouses can be added if they work for the company covered by the plan.
This option is for business owners who already have a 401(k) plan document outside of NDTCO, but would like NDTCO to hold the assets and provide recordkeeping, such as statements reflecting the account value that can be provided to the plan administrator.
Distribution Rules
As an employee, you can contribute 100% of your compensation up to $23,000 in 2024. As an employer, you can contribute 25% of compensation up to $46,000 in 2024.
This brings the total annual limit for 2024 to $69,000, plus an additional $7,500 (in employee contributions) for Solo 401(k) holders age 50 or above.
Solo 401(k)s can only be transferred to other 401(k)s or back and forth between Solo 401(k) and employer accounts.
The following account types can be rolled to or from a Solo 401(k): Traditional IRA, SEP IRA, and SIMPLE IRA (if the SIMPLE has been open at least two years).
Roth IRAs cannot be rolled into a Solo 401(k); however, Roth 401(k) funds can be rolled into a Roth IRA. Outside of Roth IRAs, any other type of qualified money can be rolled into a Solo 401(k).
Other Investments
No financial advisor knows you better than yourself. With a Solo 401(k), you have the freedom to invest your tax-advantaged retirement funds in the assets you’re most passionate about.
From real estate to startups to small businesses, if you can find it, we will help you fund it.
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