Solo 401k Minimum Income Requirements

The Solo 401k plan is designed for owner-only businesses, but are there any Solo 401k minimum income requirements? How much does your business need to make to qualify for a Solo 401k account? Sense Financial explains more about the qualifications you must meet in order to set up a Solo 401k plan.

Solo 401k Minimum Income Requirements

There is no minimum income required in order to qualify for a Solo401k. As long as you have a self-employed business activity with intention to generate income, you are qualified to have a Solo401k plan. The business activity can be full-time or part-time. Also, the contribution is at your discretion. If you find yourself with limited cash flow one year, you can decide to contribute as little as you want, or even suspend contribution for that year. There will be no tax or penalty for not contributing to the plan. However, in order for your plan to retain its Qualified-Status substantial contributions must be made occasionally.