Welcome Aboard!
Eligibility Requirements
To qualify for a Solo 401k you must:
1) Own a small business; and
2) Have no employees that work more than 1,000 hours per year and receive a W-2
1) Own a small business; and
2) Have no employees that work more than 1,000 hours per year and receive a W-2
Frequently Asked Questions About Eligibility Requirements
Does my business have to be incorporated?
No. Your business can be as simple as a sole proprietor (yourself as an individual). Sole proprietorships are the most common business in the world.
Can it be a side business?
Yes! Many Solo 401k users are full-time or part time employees somewhere else and have a side business that sponsors their Solo 401k.
Does my business have to be my primary income source?
No. You can be a full-time employee elsewhere and use your side business to sponsor your Solo 401k
How much money does my business have to be making?
There is no IRS requirement for your business to be making any certain amount of money at all. You must simply have business activity which starts the moment you decide to be in business!
How long do I need to have been in business?
Our Solo 401k users include everything from Uber drivers to retired executives who do a bit of consulting. If you have a business idea you've been waiting to take action on, take this moment to decide to take action on both the business and the Solo 401k!
No. Your business can be as simple as a sole proprietor (yourself as an individual). Sole proprietorships are the most common business in the world.
Can it be a side business?
Yes! Many Solo 401k users are full-time or part time employees somewhere else and have a side business that sponsors their Solo 401k.
Does my business have to be my primary income source?
No. You can be a full-time employee elsewhere and use your side business to sponsor your Solo 401k
How much money does my business have to be making?
There is no IRS requirement for your business to be making any certain amount of money at all. You must simply have business activity which starts the moment you decide to be in business!
How long do I need to have been in business?
Our Solo 401k users include everything from Uber drivers to retired executives who do a bit of consulting. If you have a business idea you've been waiting to take action on, take this moment to decide to take action on both the business and the Solo 401k!
I'm thinking of creating an LLC or Corporation. Should I wait to setup my Solo 401k until I do that?
After you setup your Solo 401k, you can change your sponsoring business at any time for free.
I have multiple businesses. Which one should sponsor my Solo 401k plan?
Choosing to sponsor your Solo 401k with the business that generates the most profit will enable you to maximize your contributions and tax deductions, and thus keep more of your own money and amass wealth faster.
I have part-time employees that work under 1000 hours per year. Can I still do this?
Yes! Just make sure you keep them under 1000 hours per year to maintain eligibility.
I employ independent contractors who receive a 1099 instead of a W2. Am I eligible?
Yes! As long as you don't employ anyone who works 1000 hours per year to receive W-2 wages, you can have as many independent contractors as you like and you are still eligible for your Solo 401k.
Do I need an LLC to do this?
No! You can start as a sole proprietor, which just means be yourself in business!
After you setup your Solo 401k, you can change your sponsoring business at any time for free.
I have multiple businesses. Which one should sponsor my Solo 401k plan?
Choosing to sponsor your Solo 401k with the business that generates the most profit will enable you to maximize your contributions and tax deductions, and thus keep more of your own money and amass wealth faster.
I have part-time employees that work under 1000 hours per year. Can I still do this?
Yes! Just make sure you keep them under 1000 hours per year to maintain eligibility.
I employ independent contractors who receive a 1099 instead of a W2. Am I eligible?
Yes! As long as you don't employ anyone who works 1000 hours per year to receive W-2 wages, you can have as many independent contractors as you like and you are still eligible for your Solo 401k.
Do I need an LLC to do this?
No! You can start as a sole proprietor, which just means be yourself in business!
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