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Solo 401(k)

Download your FREE Investor's Guide to Solo 401(k)s

Solo 401k Investing Guide
With a self-directed 401(k) at New Direction IRA, your Solo 401(k) can invest in the full range of allowable assets:
  • real estate
  • precious metals
  • private equity
  • private loans
  • ...and more.

Most people simply don’t know that these investments are allowable. Download our free guide and get the facts.

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401(k) Contribution Limits & Deadlines

Total employer contributions to a participant’s account, not counting catch-up contributions, cannot exceed $56,000 for 2019.

Year Maximum Employee Contribution
(if under age 50)
Maximum Employee Contribution
(if over age 50)
Employee Contribution Deadline
2019 $19,000 $25,000 Deferred from last paycheck or Dec. 31, 2018
2018 $18,500 $24,500 Deferred from last paycheck or Dec. 31, 2018
Year Maximum Contribution
(if under age 50)*
Maximum Contribution
(if over age 50)*
Contribution Deadline
2019 $56,000 $62,000 04/15/2019 (plus extensions)
2018 $55,000 $61,000 04/15/2019 (plus extensions)

The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities.

The owner can contribute both:
  • Elective deferrals up to 100% of compensation ("taxable compensation" in the case of a self-employed individual) up to the annual contribution limit:
    2019: $19,000 or $25,000 if age 50 or over.
Employer non-elective contributions up to:
  • 25% of compensation as defined by the plan, or for self-employed individuals, see discussion below.
  • One can contribute to an IRA, move it into a 401(k) account, and contribute in-full to 401(k). However, not all of the contribution would be a deductible contribution.
  • 401(k) employer may make an in-kind contribution to the plan. All other rules still apply - i.e., a disqualified persons may not be securing the loan.
  • Employer matching or non-elective contributions are always made "pre-tax." Employers cannot make Roth contributions.