Can a solo 401(k) be used as an employee?

That is, if you have a solo 401 (k), you wear both hats and can make contributions in both roles. The contribution limits are adjusted for inflation every year by the IRS. For 2023, the maximum contribution limit for a 401 (k)—as an employee—is $22,500.

Can a self-employed person open a solo 401(k)?

In fact, the Solo 401 (k) has some benefits over other types of retirement accounts available to the self-employed. If you're self-employed and don't employ others, you are eligible to open a solo 401 (k). A couple running a business together also qualifies. You can contribute to your solo 401 (k) as both employer and employee.

Is a Solo 401k a good investment?

The Solo 401k is the most tax-advantageous plan available as well as having high annual contribution limits. Along with all of the other benefits, the Solo 401k also enables you to borrow money from your retirement funds to help finance your business – something prohibited with IRA plans.