Solo 401(k)
Chapters in this video
- 0:00 Who qualifies: zero employees except a spouse
- 1:16 The two hats: employee deferral plus employer profit sharing
- 2:12 The 20% circularity trap versus the 25% plan document rate
- 3:07 2026 contribution limits by age tier
- 4:46 Traditional versus Roth tax treatment
- 5:45 The Roth RMD elimination under SECURE 2.0
- 6:19 Loans, early withdrawal penalties, and RMD age triggers
- 7:17 Rapid-fire exam recap
What this video covers
- Why a self-employed individual with no employees other than a spouse qualifies for a Solo 401(k), and what happens if they hire even one non-spouse employee
- How the employee elective deferral and employer profit-sharing contributions stack together, and the 2026 dollar limits at each age tier
- Why the employer limit is 20% of net self-employment income rather than the 25% stated in plan documents, and what circularity has to do with it
- How the standard catch-up at age 50 and the enhanced catch-up at ages 60-63 change the employee deferral and total combined limits
- The tax treatment of traditional versus Roth Solo 401(k) contributions, and why a participant can split deferrals between both types
- Why Roth Solo 401(k) accounts no longer have lifetime required minimum distributions (RMDs) after the SECURE 2.0 Act
- When plan loans are permitted versus prohibited, and why the Solo 401(k) allows loans while IRAs do not
Read the full lesson, free
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