Solo 401k For Self-Employed & Small Business IRAR Trust Company

Why Choose IRAR

Don't Let Anything Fall Through the Cracks! The IRS Will Catch It.

Our platform helps you track your personal Solo 401(k) plan's debits and credits. It also segregates the distinct types of contributions, allocating the funds in the proper plan sources. This keeps your plan compliant with IRS rules. This is something that no other platform can do.

Expert Help

Get started easily with our user friendly online platform. If you have questions, you can get live help from our experts.

Cost Effective

Maximize your savings with lower fees. Your flat annual fee includes all premium features at no additional cost.

Compliant

Keep your books in order. Allocate buys, sells, expenses, contributions, etc. with extreme accuracy.

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From a user standpoint, the IRAR platform is easy to use. I log in monthly to reconcile accounts and handle tasks, and we've already made our first investment through the Solo 401(k). I really value the flexibility, it’s even got me thinking about moving more funds from my IRA to keep diversifying. Everyone I’ve worked with at IRAR has been incredibly friendly and helpful. When technical issues came up, they jumped on calls, walked me through solutions, and helped me understand both the back-office process and the investment rules for the Solo 401(k).

Dante Passantino

REALTOR® and IRAR Client

How it Works

A Solo 401k allows you to contribute to your retirement savings in two ways: as an employee with salary deferrals from your business income (considered your compensation) and as the employer with profit-sharing contributions.

As the Solo 401(k) plan administrator, you find, buy, sell, and manage the assets and retirement funds. It's important to segregate your plan from personal finances and business expenses. Proper recordkeeping will help you maintain the tax benefits of your Solo 401(k).

Solo 401(k) Frequently Asked Questions

What is a Solo 401(k)?

A Solo 401k is a retirement plan for self-employed individuals or business owners with no other employees. This employer sponsored plan allows the business owner's spouse to participate in the plan. This plan allows high contribution limits. Both employee and employer contributions are allowed, helping the business and the owner lower their taxable income. This plan is also known as Individual 401(k), Self-employed 401(k), Personal 401(k), and One-Participant 401(k).

Can you open a Solo 401(k) without an employer?

No. Regular 401(k)plans are employer-sponsored retirement plans. However, if you have a small business with no employees, a Solo 401(k) lets you save for retirement. You can make contributions to the plan as both employer and employee and enjoy tax benefits.

Can I open a Solo Roth 401(k) on my own?

Yes. Anyone who has a business with no employees can open a Solo Roth 401(k). You can do this on your own by completing an online application.

How do I open a Solo 401(k)?

To open a Solo 401(k) you must have earned income from a business with no employees. You will need an EIN for the Solo 401(k), an EIN for the business, a checking account, and a compliant recordkeeping platform. You do not need an LLC unless that is part of your investment strategy.

What is the contribution deadline for a Solo 401(k)?

The contribution deadline for a Solo 401(k) is usually the employer’s tax return due date plus extensions. For corporations, employee contributions must be deposited within 7 business days after each payroll period. Contributions can be made by both the employer and employee. Since this plan is considered an owner-only plan by the IRS, the employee is also the owner. The District of Columbia's Emancipation Day holiday sometime falls around the same time, and the tax deadline is pushed out a few days for sole proprietors and C-Corporations.

When does a Solo 401(k) need to be established?

The last day to establish a Solo 401(k) plan for the tax year is the tax return due date plus extensions of the employer (statutory deadline). This deadline is also when employer contributions must be made. If an employer chooses to make an employee contribution, there is an earlier deadline of April 15 for sole proprietors and partnerships. For Corporations the deadline is 7 business days after the end of the calendar year. If the employer chooses to make an employee contribution, the plan will need to be established before the statutory deadline since the plan must be established before any contributions are made.

The deadline to open a Solo 401(k) for a given tax year is your tax return due date, including extensions. That’s also the deadline to make employer contributions.

However, if you want to make employee contributions:

Sole proprietors and partnerships must contribute by April 15 (without extensions).
Corporations must contribute within 7 business days after the end of the calendar year.

Important: To make employee contributions, the plan must be established before the statutory deadline—because the Solo 401(k) must exist before any contributions are made.

Can a sole proprietor have a Solo 401(k)?

Yes, sole proprietors can open and contribute to a solo 401(k) plan. Also known as a one-participant 401(k), this retirement plan is designed for self-employed individuals and business owners with no employees other than a spouse. It offers the same tax benefits and high contribution limits as traditional 401(k) plans.

What Is the Solo 401(k) Auto-Enrollment Credit?

This IRS tax credit allows you to claim $500 annually for three consecutive years if your Solo 401(k) includes an Eligible Automatic Contribution Arrangement (EACA). Unlike a tax deduction, which reduces taxable income, a tax credit directly reduces your tax liability, providing more impactful savings.

Key Benefits

The annual fee includes:

Up to $1,500 in Tax Savings: Claim $500 per year for three years
Dollar-for-Dollar Tax Reduction: More impactful than a deduction.
Promotes Consistent Saving: Auto-enrollment encourages regular contributions with the flexibility to opt out if you choose.

Resources

Contributions & Tax
Expand Your Portfolio
Solo 401(k) Calculators
Compliance Experts

Monitor Contributions and Tax Treatment

Our platform allows you to monitor your contributions, broken down by type. For example pre-tax contributions are tax-deductible, but withdrawals in retirement are taxed as income.

Roth Solo 401(k) contributions are made in after-tax dollars and are not tax deductible. However, withdrawals in retirement are completely tax-free. Proper recordkeeping is important to make sure you get the tax break at retirement.

Solo 401(k) Contribution Limits

2024 - 2025 Employer Contribution Limits

Total contributions to a participant’s account, not counting catch-up contributions (50 or older), may not exceed the maximum allowed for the tax year. The maximum is the lesser of 25% of an employee's compensation up to the maximum limit of $69,000 in 2024 and $70,000 in 2025. Employees and employer contributions combined may not exceed this limit.

2024 - 2025 Employee Elective Deferrals / Employee Contributions

The maximum an employee can contribute to a Solo 401(k) from employment income is $23,000 in 2024 and $23,500 in 2025 with an additional catch-up of $7,500 if over age 50 in 2024 and up to $11,250 in 2025 if age 60-63. This is all tracked and calculated by our platform.

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Compare

Solo 401(k) vs. SEP IRA

Expand Your Portfolio with Alternative Investment Options

Investments are fully self-directed which means you choose the investments you want in your plan. These can include alternative assets not usually available through most Solo 401(k) providers or retirement account administrators. Like in any other retirement account, all assets have a tax advantaged status.

Here are some of the many types of investment options allowed in our self-directed Solo 401(k):

■ Real estate rentals	■ Private equity
■ Limited liability corporations (LLCs)	■ C corporations
■ Hedge funds	■ Startups
■ Small businesses	■ REITs
■ Convertible notes	■ Land trusts
■ Stocks, bonds & mutual funds	■ Energy, oil, and gas
■ Tax lien certificates	■ Precious metals
■ Cryptocurrency

Real estate investing

Solo 401(k) Real Estate Investing Rules

Guide

Real Estate Non-Recourse Loan For Your Solo 401(k)

Solo 401(k) Calculators: Maximize Your Retirement Savings

Contributions Calculators

The contribution calculator on our platform makes it easy for individual 401(k) plan participants to know how much you can contribute based on your role and how much you earn. So, let's get started to take a look!

Required Minimum Distributions (RMD) Calculator

Regular distributions start at age 59 1/2 but when you reach 73, you will need to start taking an annual RMD. This calculator will help you figure out the exact amount of your RMD - it's super easy and helpful!

Net Income Attributable (NIA) Calculator

If you accidentally put in too much to your Solo 401(k) plan, don't worry. We've got a handy calculator to help you figure out the earnings or loss associated with the extra money you contributed. No need to stress!

Plan Loan Calculator

If you're taking out a loan from your plan, this calculator can help! It will figure out your available loan balance, let you choose how often you make payments, and provide an amortization schedule that your employer will approve.

Navigate Solo 401(k) with Confidence: Leading Compliance Experts on Your Side

Get access to senior retirement experts who can answer all your burning questions.

Informed Professional Network

Tap into a professional network that understands self-directed retirement, estate planning, and more.

Secure Document Storage

Store your plan-related documents, agreements, contracts, receipts, expenses, and more.

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Take Full Control of Your Retirement Funds

Maximize Your Retirement Savings with a Self‑Directed Solo 401(k)

$899 FLAT ANNUAL FEE, NO TRANSACTION FEES!

Why Choose IRAR

Don't Let Anything Fall Through the Cracks! The IRS Will Catch It.

IRAR's Solo 401(k) Retirement Plan is 100% Self-Directed

Experience the Highest Level of Compliance & Efficiency

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Solo 401(k) Retirement Plan

No transaction fees. One flat annual rate.

Understanding the Self-Employed 401(k)

Eligibility

How it Works

Solo 401(k) Frequently Asked Questions

What is a Solo 401(k)?

Can you open a Solo 401(k) without an employer?

Can I open a Solo Roth 401(k) on my own?

How do I open a Solo 401(k)?

What is the contribution deadline for a Solo 401(k)?

When does a Solo 401(k) need to be established?

Can a sole proprietor have a Solo 401(k)?

What Is the Solo 401(k) Auto-Enrollment Credit?

Resources

Monitor Contributions and Tax Treatment

Solo 401(k) Contribution Limits

2024 - 2025 Employer Contribution Limits

2024 - 2025 Employee Elective Deferrals / Employee Contributions

Free Consultation

Schedule a Call to Learn More

Compare

Solo 401(k) vs. SEP IRA

Expand Your Portfolio with Alternative Investment Options

Real estate investing

Solo 401(k) Real Estate Investing Rules

Guide

Real Estate Non-Recourse Loan For Your Solo 401(k)

Solo 401(k) Calculators: Maximize Your Retirement Savings

Contributions Calculators

Required Minimum Distributions (RMD) Calculator

Net Income Attributable (NIA) Calculator

Plan Loan Calculator

Solo 401k Plan Administrator

5 Tips to Master Self-Directed Solo 401(k) Plan Management

Resources

Individual 401(k) Contribution Limits

Navigate Solo 401(k) with Confidence: Leading Compliance Experts on Your Side

Informed Professional Network

Secure Document Storage

Resources

How to Set Up A Solo 401(k) in 5 Easy Steps

Free Consultation

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IRAR Trust Company100 Pringle Avenue Ste 650Walnut Creek, California 94596

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IRAR Trust Company
100 Pringle Avenue Ste 650
Walnut Creek, California 94596