Who is eligible for a Solo 401k?

November 28, 2008 By Leave a Comment

Solo 401k eligibility requires 2 things:

  1. Presence of self employment activity – This can be as a sole proprietor or more formally organized as a Corporation, Partnership, or LLC. It’s okay to also be employed elsewhere even if that is your full time job and you participate in a 401k there.
  2. Absence of full time employees – To meet this requirement you cannot have full time employees at a business that you own. Part time employees (those who work under 1000 hours per year) and independent contractors (those who receive a 1099 rather than a W-2 at the end of the year) are okay to employ.

If you meet this requirement, you are likely to qualify for a Solo 401k. For a free consultation, call us at 877-SOLO-401K.

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Filed Under: Blog, Solo 401k Eligibility Tagged With: 401k, alternative assets, alternative investments, business, custodian, eligibility, eligible, employees, entrepreneur, entrepreneurship, invest, investing, investment, ira, ira llc, qualified plan, qualify, self directed, self employed, solo, solo 401k, Starting a Business