Solo 401(k)
Self-Direct Your Solo 401(k). Invest in What You Know.
Take Control of Your Retirement™
Getting started with a Solo 401k
4 Key Points to Consider
When Using a Solo 401(k)
1. Over $60K In Annual Contributions
A solo(k) can receive over $60K annually in new contributions and is an optimal savings tool for self-employed persons.
2. Self-Directed and Self-Trustee
Directed IRA solo(k)s are self-directed and you as the business owner serve as trustee and will have checkbook control of your own solo(k) bank checking account.3. Must be Self-Employed with No Employees
In order to qualify for a solo(k) you must be self-employed with no other full-time employees. 4. Roth & Traditional Accounts
A solo 401(k) can have both Roth and Traditional accounts and the business owner’s spouse may also have accounts if they also work in the business.Fee Schedule Solo 401k – Custodial
Fee Schedule Solo 401k – Annual Compliance Plan
Solo 401k Participant Loan Request
Set Up a FREE Appointment with a Solo 401(k) Specialist
With Ryan Hyde for a 30-minute Quick Start Call to set up a new Solo 401(k)
With Solana Raybon for a 30-minute Quick Start Call to set up a new Solo 401(k)
Schedule with Markus Mollica for a New Account Call to set up a Self-Directed IRA.
Schedule with Brian Martinez for a New Account Call to set up a Self-Directed IRA.
Do You Qualify For a Solo 401k?
Solo 401(k) Account: (Can have Traditional and Roth Accounts) Opening Solo 401(k) Next Steps: The Solo 401(k) is an Employee Benefit Plan that is exclusively for business owners that have no full-time employees besides themselves and a spouse. The Plan is adopted by a company, not an individual, that has earned ordinary income from the sale of goods or services.
Step 1: Select the plan that works best for you
Full Service – $995
- Includes 60-minute consultation with a KKOS Associate Attorney
- Plan Set-Up with IRS-Approved Documents and Plan EIN
- How-to Plan Binder
- Schedule Your Attorney Consultation Now!
Docs Only – $495
- Includes Plan Set-Up with IRS Approved Documents and Plan EIN
Restatement – $495
- Includes Plan Set-Up with IRS Approved Documents and Plan EIN (as necessary)
Step 2: Select your annual account
Custodial Account Option
$395/annually for your first account
$295/annually for each additional Solo 401k account within your plan.
- Receipt of IRS Plan Amendments so that your plan stays in compliance with the IRS and the DOL
- Directed Trust Company will handle your record keeping and the IRS Filings (5500-EZs & 1099-Rs)
- You can obtain checkbook control via a Trust Checking Account or Investment Entity
Annual Compliance Plan (ACP)
$150/annually
- Receipt of IRS Plan Amendments so that your Plan stays in compliance with the IRS and the DOL
- Immediate checkbook control via a Trust Account at a bank of your choice
- You will be responsible for your own record keeping and IRS Filings
Solo 401(k) Plan Application
Solo 401(k) FAQ Sheet
Learn more about a Solo 401k
What Account Type is Best?
Please use the table and resources below to help compare
between a Solo 401(k) or a Self-Directed IRA
|
SOLO 401(k) |
SELF-DIRECTED IRA |
|
|---|---|---|
|
Qualification |
Must be self-employed with no Full-Time Employees (besides yourself and a spouse). |
Self-Employment not required – must have earned income to contribute. |
|
Contribution Limits |
Max Annual Contribution = $69,000 (2024) |
Max Annual Contribution = $7,000 ($8,000 if over 50). |
|
Custodian Requirement |
You can be the Trustee and Administrator – No Custodian required but one may be named |
You MUST have a 3rd Party Custodian. |
|
Rollover Limitations |
Can rollover most retirement accounts except Roth IRA and 401k with a current employer. |
Can rollover existing retirement accounts. |
|
Loans |
Can borrow up to $50,000.00 from the 401(k) it is called a Participant Loan**. |
Cannot borrow from the IRA. |
|
UDFI Tax |
Leveraged Real Estate is NOT subject to UDFI. |
Leveraged Real Estate IS subject to UDFI Tax. |
|
Consequence of Prohibited Transaction |
15% excise tax if prohibited transaction occurs. |
Entire IRA is distributed if Prohibited Transaction occurs. |
Annual Maintenance Options
Choose the pricing plan
that best fits your personal situation
|
ANNUAL COMPLIANCE PLAN |
FULL SERVICE CUSTODIAL |
|
|---|---|---|
|
Trustee/Plan Administrator |
Client is Trustee and Plan Administrator. |
Client is Trustee and Plan Administrator. |
|
Custodian |
No Custodian is named. |
Directed Trust Company named as Custodian. |
|
Bank Account Option |
Client goes to a bank of their choice to set-up a Trust Checking Account. |
Transactions will be made through an account held with Directed Trust Company. |
|
Checkbook Control |
Client has immediate checkbook control through their Trust Checking Account. |
Client can have a bank account for checkbook control funded from your Custodial Account. |
|
Record Keeping Responsibilities |
Client is responsible for all record-keeping and IRS filings required of the plan (ie. 5500 EZ or 1099-R**) |
Directed Trust Company handles all recordkeeping and IRS filings required of the plan. |
|
Annual Fee |
$150.00 Annually |
$395 for the first account under the plan, $295 for subsequent accounts |
VIDEOS AND ARTICLES ON SOLO 401(K) ACCOUNTS:
Definitions, Deadlines
and Funding Options
|
5500 EZ |
The administrator of the plan is required to file form 5500 EZ with the IRS if their Solo 401(k) plan has a combined value of assets over $250,000. For plans on a calendar year, the deadline for this filing is July 31st. |
|
1099-R |
Issued anytime money leaves a retirement plan (account) or if a Roth Conversion occurs. The deadline for this filing is January 31st. |
|
Participant |
A Loan that allows account holders to take a loan up to $50,000.00 or 50% of available account balance. Interest Rate is Prime +2%. The loan must be paid within 5 years and payments must be made at least quarterly. |
|
New Solo 401(k) Set-Up Deadline |
The Solo 401(k) Plan must be established by the Adopting Entity’s Tax Deadline. |
|
Employee Contribution Reporting Deadline |
You must report your Employee Contributions via W-2, which is due January 31st, but you have until the company’s tax return is filed to make the contributions. |
|
Contribution Deadline for Sole Prop, Single-Member LLC, or C-Corp |
April 15th (Can be extended by filing an extension) |
|
Contribution Deadline for S-Corp or Partnership LLC |
March 15th (Can be extended by filing an extension) |
FUNDING VIA CONTRIBUTIONS OR ROLLOVERS
401(K)/LLC
Master the Solo 401K:
Insights and Strategies
Explore articles, podcasts, and videos on how top earners are
enhancing their retirement savings
Ep.141 – Best Retirement Options for Freelancers in 2024
Discover the best retirement strategies for freelancers in 2024 with Mat Sorensen and Mark J. Kohler. Learn how to maximize savings, set up effective retirement plans, and take advantage of tax benefits as a self-employed professional. Tune in for actionable insights to secure your financial future!
Ep.139 – Solo 401(k) or SEP IRA: Determining the Best Retirement Strategy for the Self-Employed
Join Mat Sorensen and Mark J. Kohler on the Directed IRA Podcast as they discuss Solo 401(k) vs. SEP IRA for the self-employed. Learn the benefits, key differences, and strategies for each retirement plan to decide which is best for you. Tune in for expert insights and tips to enhance your financial future!
Buying Real Estate Inside Your IRA or 401K – With And Without Debt
Join expert Nate Hare in this informative workshop and learn how to buy real estate inside your IRA or 401K, tax-free! Discover creative strategies for retirement wealth, including using debt to enhance your IRA-owned real estate investments.
How to Borrow More Private Money – from Self-Directed IRAs
Learn the dos and don’ts of borrowing private money from self-directed IRAs to fuel your real estate investments, business ventures, and more. This free workshop explores how to raise more capital while leveraging retirement funds legally and effectively.
Ep.120 – Solo 401(k) Contribution Limits and Deadlines – 2024
Join Mat Sorensen and Nate Hare as they tear apart the complexities of contribution rules, deadlines, and benefits associated with Solo 401(k)s.
2023 Solo 401(k) Contribution Deadlines: Rules, Steps, and Strategies
As we near the close of 2023, embark on a journey of financial empowerment! For Solo 401(k) owners, understanding the exciting deadlines and regulations that shape your contributions is key. Join us in this engaging article where we unravel the essential aspects and unveil key dates every Solo 401(k) owner should have on their radar. Explore three pivotal deadlines that not only provide valuable insights for current owners but also serve as a roadmap for those planning to set up a Solo 401(k) before the year concludes. Don’t miss your chance to navigate the financial landscape with confidence and strategic foresight!
Ep.109 – Don’t Miss the Solo 401K Deadline – They’re Here
In this episode, we break down the deadlines and strategies for contributing to your Solo 401(k) plan. If you’re an S Corporation owner or a sole proprietor, this information is crucial. Discover how to reduce your taxable income, set up your Solo 401(k) plan, and start building your retirement nest egg. Don’t miss out on these valuable tips and strategies to secure your financial future.
AND DONT FORGET, SEPTEMBER 15th IS THE LAST DAY TO CONTRIBUTE!
Ep.86 – SOLO 401K VS. SEP IRA
In this episode, Mat and Mark discuss the differences between Solo 401Ks and SEP IRAs; they explain which plan is right for YOU!
2022 Solo 401(k) Contribution Deadlines: Rules, Steps, and Strategies
As 2022 has come to an end, it is critical that Solo 401(k) owners understand when and how to make their 2022 contributions. There are three...