S&S Financial Services is an agent of Imagine Real Estate.
Solo 401(k) Plans
A Retirement Strategy for Self-Employed Professionals
and Small Business Owners
What Is A Solo 401(k)?
A Solo 401(k)— also known as an individual 401(k) or one-participant 401(k)—is a powerful retirement savings tool designed specifically for self-employed individuals and small business owners with no full-time employees other than themselves (and possibly their spouse). This plan combines the features of both employee and employer contributions, offering greater flexibility and higher contribution limits than traditional IRAs.
Why Choose a Solo 401(k)?
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Higher Contribution Limits: Act as both employer and employee, allowing for greater tax-advantaged savings.
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Tax Flexibility: Choose between pre-tax (Traditional) and after-tax (Roth) contributions.
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Loan Access: Borrow from your plan (up to $50,000 or 50% of the vested balance) for emergencies or opportunities.
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Diverse Investment Options: Invest in stocks, ETFs, bonds, mutual funds—even alternative assets (with proper setup).
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Life Insurance Inclusion: When structured through Imagine IRA, life insurance can be included as an investment.
Key Features at a Glance
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High Contribution Limits:
As both the employer and the employee, you can contribute significantly more than with a traditional IRA—up to $70,000 or more annually depending on your age and income level. -
Loan Availability:
You can borrow from your Solo 401(k), up to $50,000 or 50% of your vested balance. With Imagine IRA, multiple loans are allowed under certain conditions. -
Traditional and Roth Options:
Contributions can be made on a pre-tax (Traditional) or after-tax (Roth) basis, offering flexibility in how you structure your retirement savings and tax planning. -
Diverse Investment Choices:
Invest in a broad range of assets, including stocks, bonds, mutual funds, ETFs, and—with the right setup—even alternative investments like real estate or precious metals. -
Life Insurance Inclusion:
With Imagine IRA, certain life insurance policies can be included as an investment within your Solo 401(k)—as long as they are issued through Imagine Financial Group, LLC. -
Bankruptcy Protection:
Solo 401(k) funds are fully protected under federal law, providing an extra layer of financial security. -
Custom Plan Documents:
Your Solo 401(k) plan is built using a custom plan document that defines your investment rules and features. Imagine Financial Group offers enhanced plan design for added flexibility. -
Ongoing Compliance Support:
We assist with plan setup, contribution tracking, and required filings (such as Form 5500-EZ for plans over $250,000 in assets).
Setting It Up Is Simple
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Adopt a Plan Document
This outlines the rules and structure of your Solo 401(k). We use Imagine IRA’s documents for expanded features and flexibility. -
Choose Your Investments
Select from a wide variety of traditional and alternative options. Our team can help customize this for your goals. -
Stay Compliant
Annual IRS filings (e.g., Form 5500-EZ) are required for plans with more than $250,000 in assets. We’ll help guide you through the process.
⚠️ Things to Know
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Loans must be repaid with interest within 5 years (exceptions apply for home purchases).
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Early withdrawal before age 59½ may trigger taxes and a 10% penalty.
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Keeping accurate records is essential for compliance.
Ready to Explore Your Options?
Whether you're looking to maximize tax savings, invest in alternative assets,
or gain flexibility for your business, a Solo 401(k) might be right for you.
Fill out the interest form, and let us help you get started with a personalized consultation and strategy.
