Pricing, Products, and Refund Policy
CARES Act and Coronavirus Stimulus Retirement Changes
FAQs and the Benefits of Self-Directing Retirement Accounts
Rocket Dollar Crowdfunding Campaign on Republic
Investing and Alternative Asset Classes
Self-Directed IRA (Traditional, Roth, or Beneficiary)
Self-Directed Solo 401(k) (Traditional or Roth)
- Self-Directed Solo 401(k) FAQs
- Opening a Rocket Dollar Self-Directed Solo 401(k) Account
- Structure and Titling
- Contributions and Contribution Limits
- IRS-Related Questions
- Rolling Over/Transferring Old Accounts
- Solo 401(k) Traditional Contributions
- Solo 401(k) Roth Contributions
- Solo 401(k) Loans
- Uncommon Questions
Self-Directing Retirement Compliance and Self Care
Partnering with Rocket Dollar
Fundraising with Rocket Dollar
Specific State Rules
Privacy, Security, Identity, and Fraud
What is a Self-Directed Solo 401(k)? What is the structure of the Solo 401(k?)
At Rocket Dollar, you can open a Solo 401(k) account. You will manage your own investments and have the ability to invest beyond stocks and bonds with high contribution limits.
A Solo 401(k) is a retirement plan for business owners who have no other full-time employees other than the owner and, if married, their spouse. A Self-Directed Solo 401(k) plan is ideal for those who generate self-employed income and are interested in generous contribution limits that can grow tax-deferred. Those with an S-Corp can open a SEP-IRA at Rocket Dollar.
For 2018, the total contribution limit is $55,000, with a maximum employee contribution of $18,500 and $36,500 from employer contributions.
For 2019, the total contribution limit is $56,000, with a maximum employee contribution of $19,000 and $37,000 from employer contributions.
For 2020, the total contribution limit is $57,000, with a maximum employee contribution of $19,500 and $37,500 from employer contributions.
Compared to an IRA, the annual contribution limit of a Self-Directed Solo 401(k) is 10 times that of IRAs.
You can also take out loans from a solo 401(k) and pay back your retirement plan. These loans come out as unrestricted cash, not retirement dollars, and thus do not have any restrictions on prohibited transactions or prohibited investments.
The Self-Directed Solo 401(k) Structure
Traditional and old 401(k) Roth Dollars flow into the plan, then a trust, then a trust bank account to give you checkbook control over your investments.