Broker Check
Solo 401(k)

Solo 401(k)

April 09, 2024


You could have your own 401(k)

Let’s dive in to learn more about Solo 401(k)s

  • By implementing, you could potentially save yourself tens of thousands of dollars in taxes over your lifetime

Who is eligible?

Business owners who have no employees other than their spouse.

The Benefit?

  • Higher contribution limits
    • In 2024, you can contribute up to $69,000 if you are under 50 or $76,500 if you are 50+
    • If your spouse also participates in the business, you can double those amounts
  • Supercharge your retirement savings by being able to contribute as the employee and as the employer
  • Tax advantages
    • Save on taxes today thanks to your pre-tax contributions being tax deductible
    • Create tax-free retirement income for yourself via the Roth Solo 401(k). Pay the tax now, but imagine never paying taxes on your withdrawals as long as you follow IRS rules
  • More investment options

2024 401(k) Contribution Rules:

  • Max pre-tax or Roth employee contribution for those under 50 is $23,000 in 2024. $30,500 if 50+
  • Employer max contribution amount can be as large as 25% of your net profit
  • After-tax contributions *if your plan allows*
  • Remember, your total combined employee and employer contributions cannot exceed $69,000 if under 50, or $76,500 if 50+


Say you participate in your employer 401k plan, but have 1099 income from your side business.

  • If you contribute $23,000 to your employer sponsored plan either via a pre-tax or Roth contribution, you are not able to contribute an additional $23,000 to your Solo K as an employee. However, you are eligible to contribute to your Solo 401(k) as the employer up to 25% of your net profit. The remaining dollar amount you earned can then be contributed as an After-Tax contribution.
    • This is where the Mega Backdoor Roth comes into play.
      • Check out one of my previous posts to learn more

Solo entrepreneurs, implementing a Solo 401(k) may be a great choice for you in helping minimizing your lifetime tax bill, while also supercharging your retirement savings.

Retirement Planning Solutions, LLC is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Retirement Planning Solutions, LLC by the SEC nor does it indicate that Retirement Planning Solutions, LLC has attained a particular level of skill or ability. This material prepared by Retirement Planning Solutions, LLC is for informational purposes only and is accurate as of the date it was prepared. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Advisory services are only offered to clients or prospective clients where Retirement Planning Solutions, LLC and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Retirement Planning Solutions, LLC unless a client service agreement is in place. This material is not intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Retirement Planning Solutions, LLC is not an accounting firm. Please consult with your tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.