What is a Solo 401k?
To start, 401k plans are defined in the Internal Revenue Code (Section 401) as retirement savings trusts; it is an IRS approved qualified retirement plan. A Solo 401(k) plan is another IRS approved qualified 401(k) plan, but it is designed for a self-employed individual or the sole owner-employee of a corporation. It works best when there are no other employees. Or at a minimum, very small number of employees.
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. 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. ~ Wikipedia
If have a Solo 401(k), also known as a uni-k, a solo 401(k) plan, you will have similar rules to regular 401(k)s. However because you’re allowed to fund your plan from both your personal compensation and business income, your annual contributions could be significantly higher.
What Can I Contribute to a Solo 401k?
Solo 401k Contribution Limits and Types. With a Solo 401(k), depending on your salary and age, you could contribute $54,000 per year or $60,000 for those 50 or older in 2017. For 2018, the contribution limit increased if age 50 or over.
Does a Solo 401k Qualify For a Gold Rollover?
Solo 401k investments are allowed to invest in gold and other precious metal types. It’s a great way to hedge against inflation. Precious metals such as Gold, Platinum, Silver and Palladium having fineness equal to or exceeding the minimum fineness of 995 parts per 1,000 are acceptable as Solo 401k investments.