OVERVIEW The solo 401k has strict rules around withdrawals and the penalties could be steep if you break them. The good news is that the withdrawal guidelines are fairly straightforward and easy to stay in compliance with. And in emergency situations, there are certain exceptions where you could withdraw early with no penalties. Some solo 401k plans […]
One of the most common questions around solo 401k eligibility is: Can I contribute to a solo 401k if I also receive a 401k plan at my day job? As long as you meet the eligibility requirements of a solo 401k, you’re allowed to contribute to both plans if you receive a 401k at your […]
The IRS lets you invest in almost any asset class with a solo 401k. However, in order to make investments into alternative assets like real estate, crypto, and private equity, you need full checkbook control over your investment account. Without a self-directed solo 401k, your investment options are limited to whatever your plan provider offers in […]
Roth retirement accounts have a 5-year rule, but the rules are slightly different for a Roth IRA and a Roth 401k (or Roth solo 401k). The Roth IRA lets you withdraw your contributions from your account at any age without penalty, even if you’re not 59½ years of age yet. To withdraw earnings from your account, […]
OVERVIEW With tax-free compounding and tax-free withdrawals in retirement, a solo 401k is one of the best retirement accounts to hold high-growth assets. You don’t pay any taxes when you sell assets in your account (tax-free compounding), and with the Roth solo 401k account, you pay zero taxes on when you withdraw from your account […]
OVERVIEW The IRS does not define what you’re allowed to invest in through your solo 401k. Anything goes with a few exceptions. A solo 401k account is not allowed to invest in collectibles, S corporation stock, and life insurance investments. The solo 401k comes with total investment freedom. Unlike something like a traditional 401k, you’re not limited […]
OVERVIEW & FAQ While a solo 401k gives you total freedom in what you can invest in, the IRS sets strict restrictions around who the plan can make transactions with. In a solo 401k, the assets are owned by the plan, not you or your business. When you open a solo 401k account, the plan registers for its own Employer Identification […]