Solo 401k Basics
The Self-Directed Solo 401k (also known as Individual K or Owner-Only 401k) is the Ultimate Qualified Retirement Plan designed for those people who work for themselves without any full-time employees, other than their spouse – in any capacity or structure (e.g. sole proprietorship, partnership, LLC, corporation, or independent consultant, etc.).
The Economic Growth and Tax Relief Reconciliation Act (EGTRRA), passed in 2001, stipulates how the self-employed or sole business owner can use a 401k. In particular, the act clarifies that a single qualifying participant can make contributions in the role of employee and employer.
This can lead to very high contribution limits. You can qualify for the Solo 401k if you meet two eligibility requirements:
- The presence of self-employment activity
- The absence of full-time employees
Understanding Solo 401k
With a Self-Directed Solo 401k Plan offered by Sense Financial, you now can make high contributions, borrow up to $50,000, have checkbook control over your retirement funds and use them to invest in real estate, notes, start-up businesses and much more, tax free! Our process ensures speed, accuracy and compliance.
Contact us today to get started!
Be Your Own Trustee
Every 401k designates a trustee to hold the assets of your retirement plan. In the case of the Solo 401k, you may act as your own trustee, which gives you “checkbook control” over the assets and lets you invest as you see fit.
As trustee of the plan, you can make investments from your 401k Trust account by simply writing a check. This makes the Solo 401k ideal for real estate and other non-traditional investments. However, as a trustee, you are prohibited from benefiting directly from the trust. You may not combine personal money with the trust or do any prohibited transactions with the trust.
Solo 401k Establishment Service Includes:
Basic Plan Document
Summary Plan Description
Appointment of Trustee
Action by Board of Directors
Transfer Request Forms for incoming funds transfers
Employer Identification Number (EIN) obtained from the IRS for your Solo 401k Trust
IRS Determination letter stating that this is a Prototype Plan that meets the requirements of a qualified plan
Annual Solo 401k Compliance Service Includes:
Unlimited client support
Assistance with filing of tax forms 5500-EZ and 1099-R (if required)
Maintenance of Plan Documents to ensure IRS-compliance
Provide Customized Transfer/Rollover Forms
Assistance with Rollover/Transfer
Interim Plan Amendments as required by the IRS
Turnkey Process for Solo 401k Bank Account
Calculation of Annual Contribution Amounts
GUST, EGTRRA & PPA Documents
State-of-the-art Client Portal
Initial establishment fee: $1,000
Annual fee (starts in second year): $200
Alternate investment options you get with a Self Directed Solo 401k:
Stock & Funds
Financial Concepts that Make Sense!
Greater Flexibility. Investment Freedom. Hassle-Free Management.