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At New Direction Trust Company, Solo 401(k)s are only available to self-employed individuals with no other employees. This allows an account holder to make employee contributions (for a personal tax benefit) and employer contributions (for a business tax benefit) to the same Solo 401(k). In some cases, these contributions will bear the same tax advantages of a Traditional IRA - You defer contributions from your annual income for tax purposes. In other cases, your plan document may allow post-tax Roth contributions (employee contributions only), enabling you to build a tax-free portfolio for the long haul. Your one Solo 401(k) may even permit both types of contribution, again depending on the plan document.

Contribution Deadlines & Annual Limits

Tax Year Annual Limit - Employee + Employer
(below age 50)
Catch-Up Contribution
(age 50 or above)
Contribution Deadlines
2021 $58,000 $6,500
  • Employee Contributions - December 31 or the year's final paycheck
2020 $57,000 $6,500
  • Employer Contributions - Business tax filing deadline, plus extensions

401(k) Education

Online Account Access

The premier online platform for self-directed investing and 24/7 account management.

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Investor's Guide to Solo 401(k)s

Learn the basics and reclaim control of your future through self-direction.

Self-Directed IRA Investing Guide
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Contribution Rules & Strategies

Find an edge before you even invest. Enjoy this free webinar to find out how.

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