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 $50K In Annual Contributions

A solo(k) can receive over $50K 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

Set Up a FREE Appointment with a Solo 401(k) Specialist

With Solana Raybon for a 30-minute Quick Start Call to set up a new Solo 401(k)

Do You Qualify For a Solo 401k?

Solo 401(k) Account: (Can be both Roth and Traditional or Both) 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

Docs Only – $495

Includes Plan Set-Up with IRS Approved Documents and Plan EIN
How-to Plan Binder

Restatement – $495

Includes Plan Set-Up with IRS Approved Documents and Plan EIN (as necessary)
How-to Plan Binder

Step 2: Select your annual account

Custodial Account Option
$350 for 1 account, $250 for each
additional/annually

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

Opening Solo 401(k) Next Steps:
The Application is for plan set-up with Kyler Kohler Ostermiller & Sorensen, LLP (“KKOS”) who is a separate law firm and who has an IRS pre-approved Solo 401(k) that can be self-directed. You can use another law firm or plan provider of your choice but we have coordinated with KKOS for a streamlined service.

Solo 401(k) 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 = $58,000 (2021)	Max Annual Contribution = $6,000 ($7,000 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	$350.00 for the 1st account, $250.00 for each additional account under the plan.

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.

Participation
Loan

Loan that allows account holders to take loan up to $50,000.00 or 50% of available plan 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

Articles On How To
Self-Direct Your Solo 401(k)

2020 Solo 401(k) Contribution Deadlines: Rules, Steps, and Strategies

As 2020 comes to an end, it is critical that Solo 401(k) owners understand when and how to make their 2020 contributions…..

Self-Directed IRA Versus Solo 401(k)

Many self-directed investors have the option of choosing between a self-directed IRA or a self-directed solo 401k….

Solo K Form 5500 Tax Filing and Five-Point Compliance Checklist

Solo 401(k)s have become a popular retirement plan option for self-employed persons….