Solo 401k Basics
The self-directed Solo 401k (also known as Individual K or Owner-Only 401k) is the ultimate qualified retirement plan for those who work for themselves and have no full-time employees other than their spouse. Self-employed individuals can qualify regardless of their business capacity or structure (e.g. sole proprietorship, partnership, LLC, corporation, 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 may 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 from 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 the 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 nontraditional 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.
Our Solo 401k Establishment Service Includes:
- Adoption Agreement
- Basic Plan Document
- PPA Amendment
- Summary Plan Description
- Trust Agreement
- Appointment of Trustee
- Action by Board of Directors
- Beneficiary Designation
- Loan Procedure
- Loan Documentation
- Transfer Request Forms for incoming funds transfers
- IRS Registered Tax ID (EIN) with Tax Exempt Status
- IRS Opinion Letter and Serial Number
Our 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
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.