Solo 401(k)

Self-Employed 401kSolo 401(k) plans or Individual(k) plans
A Solo 401(k) (also known as a Self Employed 401(k) or Individual 401(k)) is a 401(k) qualified retirement plan for Americans that was designed specifically for employers with no full-time employees other than the business owner(s) and their spouse(s).wikipedia
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401(k)

401k401(k) plan401(k) plans
A Solo 401(k) (also known as a Self Employed 401(k) or Individual 401(k)) is a 401(k) qualified retirement plan for Americans that was designed specifically for employers with no full-time employees other than the business owner(s) and their spouse(s).
To take advantage of these higher contributions, many vendors now offer Solo 401(k) plans or Individual(k) plans, which can be administered as a Self-Directed 401(k), permitting investment in real estate, mortgage notes, tax liens, private companies, and virtually any other investment.

Self-employment

self-employedSelf–employedself-employment tax
Self-employed workers who qualify for the Solo 401(k) can receive the same tax benefits as in a general 401(k) plan, but without the employer being subject to the complexities of ERISA.
There is also a vehicle called the Self-Employed 401k (or SE 401k) for self-employed people.

SEP-IRA

SEPretirement accountSimplified Employee Pension Plan (SEP) IRA
There existed a retirement platform unique to self-employed workers, the SEP IRA and the Keogh Plan, but it lacked many of the benefits of the typical corporate 401(k) platform, such as employee deferral.
Solo 401(k)

Individual retirement account

IRAIRAsindividual retirement accounts
4) Unlike an IRA, a special custodian is not required to be used. Most Solo 401(k) Plans can be structured as trustee directed plans, hence, the 401(k) plan account can generally be opened at any local bank and most financial institutions. This allows for faster and more economical transactions.
Solo 401(k)

Pension

pensionssuperannuationretirement plan
A Solo 401(k) (also known as a Self Employed 401(k) or Individual 401(k)) is a 401(k) qualified retirement plan for Americans that was designed specifically for employers with no full-time employees other than the business owner(s) and their spouse(s).

Employee Retirement Income Security Act of 1974

ERISAEmployee Retirement Income Security ActEmployee Retirement Income Security Act of 1974 (ERISA)
The Solo 401(k) is unique because it only covers the business owner(s) and their spouse(s), thus, not subjecting the 401(k) plan to the complex ERISA (Employee Retirement Income Security Act of 1974) rules, which sets minimum standards for employer pension plans with non-owner employees.

Keogh Plan

Keogh plans
There existed a retirement platform unique to self-employed workers, the SEP IRA and the Keogh Plan, but it lacked many of the benefits of the typical corporate 401(k) platform, such as employee deferral.

Tax deferral

tax-deferreddeferred taxationdeferred taxes
The concept of tax deferral is premised on the notion that all income and gains generated by the pre-tax retirement account investment would generally flow back into the retirement account tax-free.

IRA Required Minimum Distributions

required minimum distributionRequired Minimum Distributions (RMDs)RMD
Tax responsibility doesn't start until retirement age as the plan holder begins to take out Required Minimum Distributions (RMDs).

Form 1040

1040 forms1040 income tax form1040 series
Form 1040 - If the plan has less than $250K of assets, (which means there is no IRS Form 5500-EZ filing requirement), then employee deferral contributions are reported on your annual income tax return (1040 line 28) as adjusted income for QRP contribution. Employer Profit sharing contributions would be reported on IRS Form 1040, Schedule C for a self-employed individual (and on the corporate tax return for an employer corporation).

Form 1099-R

1099-R1099-R form
Form 1099-R - Form 1099-R needs to be filed when a distribution is taken from the Solo 401(k), or when an In-Plan Roth conversion is performed. The reported distributions will be taxable unless the distributions are after-tax funds.

Unrelated Business Income Tax

unrelated business incomeUnrelated Business Income Tax (UBIT)unrelated business taxable income
If a plan holder is using his/her Solo 401(k) funds to invest in an active business held through a passthrough entity, such as a limited liability company or partnership, then there is the possibility of Unrelated Business Income Tax (UBIT or UBTI).