Solo 401(k)

A Solo 401(k), sometimes called a solo (k) or Self Employed 401(k) is a qualified retirement plan designed specifically for employers with no full-time employees other than the business owner(s) and their spouse(s).

There are significant benefits to a solo 401(k) plan

  • Create a personal line of credit up to $50,000
  • Access credit line interest rates between 4–5%
  • Invest in virtually anything, including the stock market, real estate, tax liens, private placements, loan notes, and much more
  • Contribute up to $50k per year—more than a traditional 401(k)
  • Receive federal and state protection from creditors and bankruptcy

401(k) loan option

Similar to a traditional 401(k) plan that is held thru a broker while employed at a company, A Solo 401(k) participant can borrow up to either $50,000 or 50% of their account value—whichever is less with the accumulated balance of the solo 401(k) being used as collateral for the loan. The loan must be repaid within five years or less. The interest rate is locked at the time of the loan application at prime rate plus 1%.

You can set up a solo 401(k) thru a CPA, Lawyer or IRA Custodian, IRA Administrator or IRA Facilitator.  See the list of Solo 401(k) facilitators.

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