Comments on: Solo 401(k) Rules And Contribution Limits in 2024

By: Audry

Audry — Mon, 18 Jan 2021 05:22:53 +0000

What’s Going down i’m new to this, I stumbled upon this I have discovered It positively useful and it has helped
me out loads. I hope to give a contribution & assist different
customers like its helped me. Good job.

By: Gina

Gina — Thu, 23 May 2019 23:50:10 +0000

Hi Jeff – Question:
When the owner closes their business that is tied to their solo 401K and opens a new business in a different state – is it possible to change/move/update the existing solo 401K to the new entity? If not (which I think may be the case), and a new account with a new Trust EIN for the new company is required, what becomes of any loans against the previous solo 401K? Can the previous loan be assumed by the new solo 401k? Or is the unpaid amount considered a distribution?
Thanks – Gina

By: Jacob Palmer

Jacob Palmer — Mon, 18 Feb 2019 22:22:01 +0000

This is great information. Perhaps I missed this answer, but I have a lingering question: Does the money I put into my Solo 401(k) have to come from my business revenue or does it not matter? In other words, can I automatically contribute via the contracting company I work for since they don’t have a 401(k)? I am not an independent contractor in this scenario.

By: Jeff Rose

Jeff Rose — Mon, 28 Jan 2019 23:16:27 +0000

In reply to Dean Etchison. Hi Dean - You may want to talk to an attorney.

By: Jeff Rose

Jeff Rose — Mon, 28 Jan 2019 23:01:48 +0000

In reply to Brenda K. Hi Brenda - I'm not an accountant so I don't know the specific answer to your question. But since a solo 401(k) is simply a 401(k) plan for one person, my guess is the rules are the same as for an employer plan. In that case, the employer match can be deducted from income before calculating the FICA tax. But that's just an educated guess, you might want to check with an accountant.

By: Dean Etchison

Dean Etchison — Sat, 12 Jan 2019 13:04:21 +0000

I/we contributed to our IRA for 10 years the actt. was dormant for 14 years.
Finding the document as of 2004 showing a nice balance I found that BANK ONE HAD BEEN ABSORB INTO CASE BANK .
After many phone many phone calls found informaion that my account had been completely depleted.
Seems that IRAs are not protected by bank lns.
Some one was able to withdraw all my funds.
This seems so unfair, and is a criminal act..
Seems that I have to prove that I never took any
Withdrawals
Having never received any statements from CHASE yet they have my present address on file.
Something is really wrong here.

By: Brenda K

Brenda K — Mon, 07 Jan 2019 05:24:03 +0000

Thank you for a very informative article Jeff.
I have a question rather than a comment if I may?
I understand the employee portion of contributions to a solo 401k are subject to FICA taxes, but am wondering if my employer portion of contributions would be excluded from FICA, as in the case of a traditional 401k? Sorry if it was explained in your article and I misunderstood. It’s hard to put aside this much as a self employed person if you have to pay the FICA on both sides.

By: Michael

Michael — Fri, 28 Dec 2018 17:41:23 +0000

In reply to Jeff Rose. Paul, your accountant should be able to steer you to a Solo 401k plan with NO setup fees and NO annual fees, such as e*trade. There is no need to pay an investment company those inflated fees for a Solo 401k account.

By: Jeff Rose

Jeff Rose — Thu, 27 Dec 2018 16:02:10 +0000

In reply to Annemarie Keehn. Hi Annemarie - That's somewhat true, except that the IRS does have a dedicated website for the solo 401(k), and the convention is to consider it as it's own thing. It's basically a 401(k) for one person (plus that person's spouse), but it's not entirely unique.

By: Annemarie Keehn

Annemarie Keehn — Wed, 26 Dec 2018 20:20:53 +0000

There is no such thing as a “solo 401k” plan. A 401k plan is just a 401k plan. The rules for how to run it change depending on whether or not there are common law employees, but you should not have to “switch” from a solo 401k plan to a “traditional” 401k plan. They are all the same (assuming you haven’t bought into some weird legal document that is calling itself a “solo” plan and therefore contains legal restrictions that shouldn’t be there). See my article: What is a Solo 401k Plan at http://www.consultrms.com/Resources/55/Solo-401(k)/126/What-is-a-Solo-401(k)-Plan. As well as IRS website: https://www.irs.gov/retirement-plans/one-participant-401k-plans