What is a Solo(k)?
The Solo(k), also called the Individual 401(k), is a powerful retirement savings plan for self-employed individuals.
Who is eligible for a Solo(k)?
The Solo(k) is for owner-only businesses or owner and spouse businesses. The business can be incorporated or unincorporated, Sole proprietors, C corporations, S corporations, partnerships and LLC’s.
Plan Basics
Self-Employed individuals and owner-only (and the owner’s spouse) businesses and partnerships can save more for retirement through a 401(k) plan. The Solo(k) allows you to take advantage of this increased retirement and tax savings opportunity with a full range of investment options.
| Tax Benefits | Tax-deferred growth, tax- deductible contributions, and pre-tax deferral contributions |
| IRS Maximum Contribution | Salary deferrals up to $18,000 |
| Catch-up Contribution | Salary deferrals up to $6,000 (if age 50+) |
| Profit Sharing Contribution | Up to 25% of compensation, up to the annual maximum of $53,000 for the plan year |
| Establishment Deadline | The deadline to open a new plan is December 31 (or fiscal year-end) |
| Administrative Responsibilities | Annual Form 5500 filing after plan assets exceed $250,000 |
| Withdrawals | Minimum required distributions starting at age 701⁄2. 10% early withdrawal penalty if under age 59 ½ and no exceptions apply. |
Great value We offer a low cost platform and bundled or unbundled services for your total retirement solution.
Contact RPC for pricing on services needed.
Exceptional service
Our team of knowledgeable professionals are trained to assist you in selecting the plan best suited for you and your needs. We provide one-on-one guidance to maintain each plan.
Tax Advantages
The Solo(k) may substantially reduce your current income taxes because generally, you can deduct the entire amount of your plan contributions from your taxable income each year.
- If your business is unincorporated, you can deduct contributions for yourself from your personal income
- If your business is incorporated, you can generally deduct contributions as a business expense.
Services Available
- Third Party Administration
- Recordkeeping
- Document Preparation
- 5500 Preparation
Pricing
Solo(k) plans are available from $200 per year. Please review our simple pricing sheet, with next steps, here.