Click here to learn more about our financial professionals by visiting FINRA's BrokerCheck.

Individual 401(k)

What is an Individual 401 (k)?

It is also known as an Individual (k), Solo 401 (k), Personal (k), Single (k) and One Participant plan are the many different terms for the same thing

This is not new- it is simply a traditional 401 (k) plan covering a business owner with no employees or business owner and his/her spouse.

These plans have the same rules and requirement as any other 401 (k) plan. The cost to administer these plans are greatly reduced because there is far less to administer and there are no employees.

 

Why go with a Solo 401 (k)?

A key advantage of having an Individual (k) is that you have the ability to access your funds without paying any taxes or facing any penalties.

Prior to retirement, you access these funds through a loan and the interest on the loan is paid to yourself. So yes! You are acting as a bank.

 

How much money can I access through a loan?

You can access $50,000 or 50% of your account balance- whichever is less. Your spouse, business partner and your partner’s spouse have the ability to do the same thing.

(This means collectively, you can access up a max of $200,000 WITHOUT credit approval)

 

Are there anymore benefits?

You will be able to access up to a maximum of $200,000 with out any credit approval almost immediately.

(This amount is only accessible through yourself, spouse, business partner and your business partner’s spouse)

 

You have quick and easy access to your funds, with greater input as to how your funds are managed.

 

Qualified retirement accounts can roll into this plan so you can consolidate all of your accounts. Accounts such as: another 401 (k), 403b, traditional IRA, SEP, Simple, Keough.

 

Can I still work and having this account?

Yes! You will be able to work at any place of employment and also have this account.

 

As a business owner, would my business have to be registered as a C-Corp?

No, your business does not have to be registered as a C-Corp.

 

Why would I choose this over my company retirement plan?

  • If you take out a loan, the payback of those funds is at your discretion (either monthly or quarterly)

 

  • If you terminate your position with your employer, your loan has to be paid back immediately! (So, unless you fire yourself, then this definitely isn’t a problem to worry about)

 

  • We offer an unlimited selection of investment choices (most employers have a very limited investment selection)

 

  • You may will have the ability to withdraw funds from this account while you are working without worries of it being deducted from your paycheck. You will have to see if your employer allows a “non-hardship in service withdrawal”

 

A business owner wears two hats in a Individual (k) Plan. One hat is of the business owner, while the other hat is of the employee. Contributions can be made to the plan in BOTH capacities. Maximum contribution is $64,000 per year.  Elective deferrals up to 100% of compensation up to the annual contribution limit ($18,500 or $24,500 if you are over 50)

 

Why choose HAS Wealth Management to manage your account?

We offer helpful support- we will respond immediately upon receiving your questions or concerns.

We offer you an unlimited amount of investment options! Giving you the opportunity to be more hands-on with the management of your funds.

We offer account options where there is NO fee to set up an account with HAS Wealth Management!










IRA strategies implementing various tax strategies or tax codes may not be appropriate for all investors. There are several choices investors have when rolling over money from one plan to another. Since each choice has its own implications, it is recommended that you discuss and compare all potential fees, expenses, commissions, taxes and legal ramifications with your qualified advisor before making a rollover decision. Please consult your investment and tax professional prior to implementing a strategy.