A solo 401(k) plan is a traditional 401(k) plan that covers a business owner with no employees, or that person and his or her spouse. A solo 401(k) is ideal for a business owner with no employees (with the exception of a spouse) who would like to contribute above the limits of a personal IRA.

Who can contribute?
Contributions can be made as employee deferrals and employer contributions.

How much can you contribute to a solo 401(k)?
Maximum annual employee deferral contribution (2020): the lesser of $19,500 or 100% of compensation
Catch-up deferrals if employee is age 50 or older (2020): $6,500

Maximum annual employer contribution: 20% of Schedule C Income or K-1 income and 25% of W-2 Income

For 2019, the total contributions (employee + employer) cannot exceed $56,000.

Plan Implementation 
Establish an account at a financial institution to manage the investments and set up an IRS approved plan document.

Ongoing Administration
A 5500 is required once plan assets reach $250,000 or there is another eligible employee. A solo 401(k) for a business owner with no common-law employees is not subject to nondiscrimination testing.

Contact Us

212-947-4800 ext 227


Schedule a Meeting

Ask about our Solo 401(k) Monitoring Service!

  • Maintain compliance of the Plan Document with restatements and amendments
  • Monitoring asset levels to determine the filing requirements
  • Confirming there are no employees or companies that are part of a controlled group/affiliated service group to ensure the Plan remains in compliance
  • Advising on maximum contributions/ways to increase maximums (adding another Plan)
  • Distribution consulting as requested (loans, ISDs, 1099s, etc.)