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Solo 401k Setup Process

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Setting up a Solo 401k can be a powerful tax planning tool. Solo 401ks are fully compliant within the IRS rules. With Nabers Group, the Solo 401k setup process is simple and straight-forward.

Visualize the Solo 401k Setup


Solo 401k Qualification

Opening a Solo 401k account requires two elements of qualification:

  1. You must own a business
  2. Your business must have zero employees (employees defined as those who work for you more than 1000 hours per year and receive W2 wages)

Any type of business can have a Solo 401k plan. Potential business structures include sole proprietorships, LLC (single-member LLC, multi-member LLC, etc), partnership, S-corp, C-corp, etc.

Once you determine you qualify, complete your Solo 401k application online. Once we receive your application, we can typically have your Solo 401k plan documents ready within 1-2 hours. This means you can accelerate the funding process whenever you’re ready.

Funding Your Plan

The next part of the Solo 401k setup process is getting money into your plan. There are two ways to get funds into your Solo 401k:

  1. Rollovers
  2. Contributions

Rollovers can come from almost any retirement plan (traditional IRA, 401k, 403b, TSP, pension plan, etc). Rollovers can be partial or full and can happen on any schedule and in any amount. There is no limit to the amount of money you can roll into your Solo 401k plan.

Contributions come from earnings from your business. You can contribute a maximum of $57,000 per year. Contributions are $63,500 if you are age 50 or older.

Start Investing

Your Solo 401k can hold any number of investments. Traditional equities like stocks, bonds, ETFs and funds are a popular investment. Additionally, the Solo 401k really shines when holding alternative assets.

Real estate, bitcoin, gold & silver, promissory notes, private lending, and more are all options. Once your funds are in your control, you get to decide how funds are invested. It’s not too late to start a plan for 2020. When you set up a Solo 401k by December 31, 2020 you have until tax day to make contributions to your Solo 401k. Get started today!

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Solo 401k

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