Requirements
To open and contribute to a solo 401(k), you must meet two criteria:
- You have self-employment income
- Your business has no employees other than you and your spouse
Contribution limits in a one-participant 401(k) plan
The business owner wears two hats in a 401(k) plan; EMPLOYEE and EMPLOYER. Contributions can be made to the plan in both capacities. The owner can contribute both.
Contribution Limits for 2025
- 25% of compensation as defined by the plan can be company contribution
- $23,500 maximum salary deferral
- (if 50 to 59 (or 64+) years and above, additional $7,500)
- (if 60 to 63 years, additional $11,250)
- $70,000 (additional $7,500, if eligible)
Roth or Pre-Tax
- Salary deferral can be Roth or Pre-Tax
- Company contribution will be Pre-Tax
- Add in-plan Roth conversions to convert Pre-Tax dollars to Roth dollars
Disclosure: Archford is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. For more information please visit: https://adviserinfo.sec.gov and search for our firm name. Neither the information nor any opinion expressed it so be construed as solicitation to buy or sell a security of personalized investment, tax, or legal advice. Securities offered through Valmark Securities, Inc.
