Rocket Dollar Knowledge Base

What is a Self-Directed 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.

Compared to an IRA, the annual contribution limit of a Self-Directed Solo 401(k) is 10 times that of IRAs.

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. 

 

Solo 401(k) Funding (1)

 

Read more about our Self-Directed Solo 401(k)