Solo 401(k) Plan

  • Contributions can’t exceed $56,000
  • For self-employed, owner-only businesses and partnerships
  • Must file paperwork once assets reach $250,000

Solo 401(k) you are both employer and employee, business owner can contribute both:

  • Elective deferrals up to 100% of “earned income” up to annual contribution limits, which is $19,000 in 2019
  • 25% of compensation, which the IRS defines as net earning from self-employments minus one-half of your self-employment tax and minus the contributions you make to your retirement plan.

Total contributions cannot exceed $56,000.

Owners’ spouses also may participate.