The ultimate self-directed plan for self-employed investors
Eligibility
- You have self-employment income from a for-profit business
- Your business has no full-time non-owner employees working 1,000 or more hours per year
- A working spouse may participate without disqualifying the plan
- A day job or other employer plan does not disqualify you
Contractors receiving a 1099, employees under age 21, union employees, and employees working fewer than 1,000 hours per year do not count toward the employee threshold. Long-term part-time employees are the exception: someone working at least 500 hours in two consecutive years becomes eligible regardless. Controlled group rules may apply if you own multiple businesses.
Plan advantages
High contribution limits
Contribute up to 10 times more than an IRA allows.
Pre-tax and Roth accounts
Hold both traditional and Roth balances within the same plan.
Participant loans
Borrow up to $50,000 from your own plan, with no credit check and no tax owed when repaid on schedule.
No custodian required
You act as trustee; the plan holds investments directly with no intermediary layer.
UDFI exemption
The Solo 401(k) is fully exempt from UDFI tax on leveraged real estate and debt-financed syndications.
Mega backdoor Roth
After-tax contributions can be converted to Roth, enabling tax-free growth at high income levels.
Pricing
| Setup | Monthly | |
|---|---|---|
| Amount | $400 | $15 |
| When paid | One-time, paid personally | Personal or plan funds |
Approximately 50 percent of industry average. No fees based on account value. No state filing fees, no registered agent required. Bank fees (wires, etc.) per your bank's schedule.
What's included
Setup ($400)
- Solo 401(k) EIN
- Plan adoption agreement
- Plan trust agreement
- Certification of trust
- Administrative forms
- Trust resolution templates
Monthly ($15)
- IRS-required plan amendments and restatements
- Knowledge base access
- Education resources
- Support access
Setup timeline
| Plan setup | Plan funding | |
|---|---|---|
| Timeframe | 2-3 days | 1-4 weeks |
| Scope | EIN, plan documents, and signed agreements | Varies by funding source; rollovers may take longer |
Key facts
| Who manages the plan | You, as plan trustee and administrator |
| Authority | Full signing and banking authority |
| Custodian required | No; the plan trust holds investments directly |
| Plan type | Employer qualified retirement plan & trust |
| Spouse participation | Permitted; doubles household contribution capacity |
| Annual IRS filing | Form 5500-EZ required when plan assets exceed $250,000 at the end of the plan year; final return on termination regardless of value |