A Solo 401(k), also known as an individual 401(k), is a retirement savings plan designed for self-employed individuals and business owners with no full-time employees other than a spouse. It offers high contribution limits and flexibility.

Self-employed individuals or business owners with no full-time employees, except for a spouse, qualify to set up a Solo 401(k). This includes sole proprietors, independent contractors, and small business owners.

For 2024, the total contribution limit for a Solo 401(k) is $66,000 for individuals under 50, and $73,500 for those aged 50 or older. This includes employee deferrals and employer contributions, which are calculated based on net self-employment income.

Yes, loans are permitted from a Solo 401(k), subject to plan rules. The loan limit is the lesser of $50,000 or 50% of the account balance, and it must be repaid within five years with interest.

Yes, a spouse can contribute to a Solo 401(k) if they earn income from the business. They can make employee deferrals and receive employer contributions, effectively doubling the total contribution limit for the household.