SOLO 401K's
AT THE BEST PRICE
GUARANTEED
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WORK WITH THE EXPERIENCED PROFESSIONALS AND SAVE
Our team created some of the very first self-trusteed, self-directed, checkbook control Solo 401k plans for individuals. Now we can help those who don't want to pay thousands of dollars take advantage of the very same programs others are charging more for.
HOW IT WORKS
Qualify
Our plans have some truly amazing benefits. The catch? There are eligibility requirements to qualify.
Create
We’ll provide you with your very own IRS-approved Solo 401k plan and trust documents with IRS determination letter.
Setup
You’ll simply sign your documents and setup an account for your 401k at the bank of your choice.
Use
You can transfer existing funds into your Solo 401k, add new funds, and make investments to grow your account.
FREQUENTLY ASKED QUESTIONS
A: A Solo 401k is a type of qualified retirement plan. Unlike other 401ks, however, a Solo 401k enjoys reduced administrative requirements and a wide range of benefits to the owner-employee.
A: Contrary to the vast majority of 401k plans and even most Solo 401ks, a Discount Solo 401k can invest into anything allowed by law. Our plan documents don’t place any additional restrictions on your activities. This leaves you free to invest in real estate, private businesses, mortgage notes, precious metals, tax deeds/liens and more. The acquisition of traditional assets such as stocks, bonds, and mutual funds is also permitted. The main restriction is on “self dealing” which means you cannot direct your Solo 401k to transact with (or benefit) you or most of your family members. Such a transaction is called a prohibited transaction.
A: Although 401k plans were created in 1981, it wasn’t until the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) that additional benefits and reduced administration were made possible for certain plans. Eligibility requirements for these plans required a participant be self-employed with no employees of his or her own (a solo business owner). These plans are now commonly referred to as Solo 401(k) plans. Legislation subsequent to 2001’s EGTRRA has served to increase the flexibility of the Solo 401k.
A: Yes. You can transfer funds from most retirement accounts into the Solo 401k without creating taxable distributions. Note that if you participate in a plan (such as a 401k) with your current employer, your plan’s administrator may not allow you access to any of the funds while you are still employed. To find out, ask the administrator if the plan provides for “in-service distributions.” If in-service distributions are not allowed, transferring assets currently held in that plan will have to wait until your employment is discontinued or the plan is otherwise terminated.
A: No. 401k plans, which are addressed in section 401 of Internal Revenue Code, do not fall under the custodial requirement that applies to IRAs. Since there is no custodial requirement for a Solo 401k, the plan participant can be his or her own trustee. This allows for direct checkbook control, a powerful feature of the Solo 401k.
A: The ongoing cost for our Solo 401k is an annual maintenance fee of just $100 and this includes any amendments or restatements necessary for your plan to keep its qualified status with the IRS. Other than the one-time setup fee, this is the only fee we charge. There are no asset or transaction fees.
A: Quite possibly. Eligibility for a Solo 401k requires that you have some type of self-employment activity AND no full time non-owner employees in any businesses that you own. There is no restriction on being employed elsewhere. Your self-employment activity can be on a part time basis.
A: There is no age requirement for a business to adopt a Solo 401k plan.
A: There is no minimum amount of self-employment income needed for a Solo 401k.
A: Yes. There is a designated Roth component built into the Solo 401k. Our plans also allow for after-tax (non-Roth) contributions for those interested in the mega backdoor Roth strategy.
A: As a solo business owner, you are able to make contributions on behalf of both the employer and the employee since you are considered to serve both roles.
A: Quite possibly. A spouse is eligible to participate in the plan if he or she receives income from the company that adopts the plan. An eligible participant can not only make contributions to the plan from income received from the adopting employer, but can also transfer eligible existing retirement funds into the plan. Spousal participation effectively doubles the maximum limits on contributions to that plan. It also serves to eliminate the costs of having to create and maintain multiple plans.
A: Yes. With regard to 401ks, there is an exemption to the prohibited transaction rules for participant loans. The participant may borrow funds from the Solo 401k to use for a variety of purposes. All Discount Solo 401k plans come with the participant loan feature for no extra charge.
A: Yes. Disqualified persons are determined the same way for both structures and the prohibitions apply to the same activities regarding those disqualified persons. One notable exception is the participant loan feature of the Solo 401k. There is a Department of Labor exemption for participant loans.
A: Yes. You are able to invest in both traditional as well as alternative assets with a plan from Discount Solo 401k. We offer a fully featured compliant plan for thousands less than some competitors. To invest in stocks, bonds, and mutual funds, a brokerage account can be opened in the name of the Solo 401k trust we create for you.
A: Yes. The financing will have to come by way of a non-recourse loan. A non-recourse loan is a method of financing in which the 401k participant will not be required to personally guarantee the loan, nor will the other assets of the borrower (technically, the Solo 401k) be used to secure the loan. The only action a lender can take in case of default of the loan is to acquire the asset on which the money was loaned.
A: Form 5500-EZ is the filing requirement for Solo 401k plans with $250,000 or more in plan assets. It is simply an informational return that is filed with the IRS. Solo 401k plans with assets totaling less than $250,000 have no filing requirement at all.
TESTIMONIALS
ABOUT US
Discount Solo 401k is a full-service provider of specialized Solo 401k plans. All of our plans include checkbook control and are fully self-directed, allowing for investment into any and all legal assets, including real estate.
We take pride in delivering all of the features thousands of investors are enjoying with their self-directed Solo 401k without the huge setup fees and high ongoing costs that often accompany such plans.
We are a nationwide provider located in the Denver, Colorado area and setup compliant plans for clients in all 50 states.
Discount Solo 401k is backed by a team of professionals ranging from pension and benefits specialists to CPAs and attorneys with over 50 years of experience in plan administration. Every one of our Solo 401k plans is delivered with an IRS determination letter that proves the plan’s qualified status.
We are also Better Business Bureau accredited with an A+ rating, many positive reviews, and zero complaints.
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