Solo(k): 401(k) plans for Individuals

Use the ASID Member Solo(k) Program to create your own 401k and start saving for retirement now. For those wanting to save $7,000 to $81,250 per year, including catch-up.

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                    Solo(k) Basics
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                    Solo (k) Contributions
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                    Solo(k) Pricing
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Solo(k) Basics

Investments:	Mutual Funds. No brokerage or Self-directed options
Distribution Rules:	Only if a triggering event such as separation from service, attainment of age 59 1/2, employee hardship, or if the plan terminates.
Loans:	Loans are available. 50% of the participants balance or $50,000 whichever is lower. Interest is paid to participant.
Testing:	Elective Deferrals and Profit-Sharing Contributions are not tested in the Solo(k).

Solo (k) Contributions

Solo(k)'s are designed for individuals who are self-employed with no employees other than their spouse. The benefits of the Solo(k) is you have two types of contributions, as an employee of your company, and as the employer of your company. The employee portion makes the Solo(k) attractive as it could be up to 100% of your compensation (subject to self-employment taxes), unlike a SEP which has limits of 25% of your compensation.

Employee Elective Deferrals:

up to 100% of your compensation capped at $23,500 as an employee. Elective deferral contributions may only be made during the calendar year.

Catch-up Employee Contributions:

Participants age 50 or older can contribute an additional $7,500 catch-up contribution, or $31,000, for 2025.
Participants age 60 - 63 by December 31, 2025 can contribute an additional $11,250, or $34,750 for 2025.

Employer Profit Sharing:

Are considered additional year-end contributions. Solo(k) participants can contribute up to an aggregate of $70,000 excluding catch-up contributions. These employer profit sharing contributions are capped at 25% of compensation. Compensation limits for 2025 are $350,000.

Example Table:

Owner	Age	Annual Elective Deferrals	Profit Sharing Contribution	Total
Example 1	45	$23,500	$46,500	$70,000
Example 2	51	$31,000	$46,500	$77,500
Example 3	60	$34,750	$46,500	$81,250
Example 4	45	$0	$70,000	$70,000

Please note; the "employee" limit of $23,500 is your personal limit for 2025 between all 401(k)'s with any employer, not per plan. The "employer" limits; however, are per plan with a limit of 25% of compensation (capped at $350,000).

Details:

https://www.irs.gov/retirement-plans/one-participant-401k-plans

Solo(k) Pricing

Fixed annual cost:	$30 pulled directly from the account.
Asset Based:	0.99% pulled directly from the account.
Internal mutual fund expense:	0.22% - 0.74% depending on your fund selections.

Program Partner

Design Business by ASID program partners; Arcwood Benefits Consulting, Inc. as an insurance consultant and Arcwood Financial as a 401(k) advisor and consultant, dba Arcwood®, will assist ASID members in reviewing program options and comparing them with other insurance plans and retirement plan vendors. Arcwood is also available to conduct pricing and plan design analyses for ASID members with existing plans and larger businesses.