Solo 401(k) Services in Seattle, WA

Overview Of A Solo 401(k)

A Solo 401(k) is used by self-employed individuals with no employees other than a spouse. A Solo 401(k) is easy to set up and maintain and allows for the deferral of up to $66,000 of income per year. While a SEP allows for a deferral of up to 25% of income, a Solo 401(k) allows for an employer contribution up to 25% of income as well as employee contributions up to standard 401(k) limits, meaning overall you are not limited to 25% of income.    

Primary User Of A Solo 401(k)

  • Self-employed individual or business with no employees other than a spouse

  • Available to sole props, partnerships, LLCs, C corps and S corps

Advantages Of A Solo 401(k)

  • Potentially higher contribution limits than SEP IRA

  • Wide range of investment choices

Who Can Contribute To A Solo 401(k)

  • Funded by employee deferrals and employer contributions

2023 Employer Contribution Limits

  • Employers may contribute up to 25% of compensation up to a maximum of $66,000

  • Total employer / employee contributions cannot exceed $66,000

2023 Employee Contribution Limits

  • Up to $22,500 in salary deferrals; $29,000 if age 50 or older

Admin Responsibilities

  • Annual Form 5500 filing after plan assets exceed $250,000

Access to Assets

  • Cannot take withdrawals from the plan until a "trigger" event occurs, such as turning age 59.5, disability or plan termination

Plan Set up Deadlines

  • Establish by December 31 (or fiscal year end)

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