Solo 401k plans have many aliases: solo-k, uni-k, and one-participant-k, among others. Whatever you want to call it, the retirement plan is one of my very favorite for small business owners without eligible participants. They’re easy to set up, inexpensive to operate, and simple to maintain.
One of the few downsides of solo 401k’s is that they do have one murky intricacy: determining the maximum amount you can contribute in a given year.
This post will cover how to calculate solo 401k contribution limits. We’ll cover the contribution calculations, the deadlines, and everything else you need to know about the accounts.