• Self Directed IRAs
  • Types of IRAs
  • Investment Options
  • Funding Options
  • Converting to a Roth IRA
  • Distributions
  • Prohibited Transactions
• Health Savings Accounts
  • About HSAs
  • Qualified Medical Expenses
  • Features of HSA Manager
  • Investment Options
  • Funding Options
  • HSA Guidelines
• Solo 401(k)s
  • Eligible Businesses
  • Investment Options
  • Funding Options
  • Roth Solo 401(k)

Eligible for Solo 401(k)

Solo 401(k)s may be ideal retirement plans for a variety of single-owner businesses, including sole proprietorships, limited liability companies, partnerships and corporations. Candidates for these types of plans include: real estate brokers, sole practitioner CPA firms, consultants, contractors, entrepreneurs, attorneys and tradesmen. While Solo 401(k)s are designed for small-business owners with no full-time employees, the following exceptions are permitted:
 

• Spouses
• Part-time employees working fewer than 1,000 hours per year
• Employees with less than one year of service
• Certain union employees
• Certain non-resident/alien employees

Business owners should know that once a single full-time employee is added, the plan must be converted to a traditional employee-sponsored 401(k) Plan, which is then subject to ERISA Plan Rules.