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Solo 401(k) for Everyone – Even You!

Solo 401(k) for everyone

Solo 401(k) for Everyone

The Solo 401(k) is the best retirement plan for self-employed individuals.  We think everyone should have one!  In the following, we’ll discuss how a “Solo 401(k) for everyone” is possible.  You don’t need to start your own business.  You don’t need to make a ton of money.  All you need is a side job that earns you some self-employed income.  We think there are tons of jobs that just about anyone can do.  Just think how that extra income will improve your state, along with fast-tracking your way to retirement.

What Exactly is the Solo 401(k)?

A Solo 401(k) is just like your workplace plan (assuming one is available to you). However, it’s specifically designed for the self-employed. You can have an owner-only business or any type of side income. So long as you have self-employment income, you can open and fund a Solo 401(k). In fact, we believe the Solo 401(k) is the best option for you. Here are just a few benefits of the plan:

High Contributions – For 2023, you may contribute up to $66,000 to a Solo 401(k). Further, if you are at least age 50, you may contribute another $7,500. The only other plan that has this high of a limit is the SEP IRA. However, there is no “catch-up” contribution. Alternatively, you may only contribute up to $6,500 to an IRA ($7,500 if age 50+).

Tax-Free Loan – Unlike an IRA, you may borrow money from your Solo 401(k) plan. You can borrow up to $50,000 or one half of your account balance, whichever is less. This tax-free loan can be taken out for reason. And since you are borrowing from yourself, all interest is paid back into the plan.

Investment Opportunities – By self-directing you Solo 401(k) plan, you are free to make just about any investment you want. You can go the traditional route with stocks, bonds and mutual funds. Or, you can look at alternative assets, such as real estate, precious metals or private businesses. Essentially, the only things you can’t invest in are collectibles and a transaction involving a disqualified person.

UDFI Exemption – If you decide to invest in real estate, there’s a complicated rule called UDFI. When using a loan with an IRA to purchase a property, you are subject to the UDFI tax. This amount is determined by the profits you made and the loan amount used. The Solo 401(k) is exempt from this tax.

Best Self-Employment Opportunities

We know not everyone can start their own business. However, we feel there are tons of opportunities to become self-employed, even if it’s just a side job. In the following, we’ll talk about several, so-called “gig” jobs anyone can do!


There’s not much you need to start working for Uber or Lyft. All you need is a decent car and some spare time. Basically, your car needs to pass an inspection, have plates and registered in the state you want to work and you must be at least 21.

Alternatively, you can “rent” out your own car with a service, such as Turo. Instead of doing the driving yourself, you let other people borrow your car for a fee. This is great for people who don’t need to rely on their car on a daily basis. Also, if you are near a big city or airport, you should have plenty of business.

Delivery Driver

Another car related job you can have is a delivery person. Amazon made a big splash this year when they offered employees $10,000 to quit their jobs and start delivering for the company. Consumers what orders delivered as fast as possible and now is a great time to start delivery services on the side.

Dog Walker/Pet Sitter

Love animals? Why don’t you look at jobs involving them. Dog walkers and pet sitters are always in need. There are tons of professionals that have dogs, but not the time to always take care of them. You can even go beyond that become a “Sniffspot Host.” Perfect for dog walkers looking to expand their client list. With Sniffspot, you use your pet friendly yard to host the animals for a fee. This is an awesome way to earn passive income for those with lots of land on their property.


I don’t think there will ever be a lack of need for good tutors. From grade school all the way up to the college level, there’s always a need for a big brain. Teachers may already be doing this in their spare time, but you don’t need a degree to help mold a young mind. Starting with friends and family is a great way to build up a reference list, too!

Along the same vein, translators are often in demand. Obviously, if you speak Spanish and English, there is plenty of opportunity out there. Other popular languages include French, Chines/Japanese and German.

Buy & Sell

eBay continues to be a great place to buy and sell. You may have a stockpile of old clothes, toys or jewellery. Heck, you can even make your own things and sell them on Etsy. Everyone wants to save money, so buying in bulk and selling merchandise cheaper than the big guys could lead to big profits.

Find Something that Fits

Maybe one of these jobs is not right for you. You can use your own personal experience and expertise to find something that fits. Maybe you want to be a life coach. How about a party planner? Perhaps a personal chef or caterer? As we said in the beginning, there’s a job out there for everyone! And therefore, a Solo 401(k) for everyone!

The Solo 401(k) for Everyone Exists!

The eligibility rules for the Solo 401(k) are quite clear. As long as you have self-employed income, you can maintain one. Does your current job offer a 401(k) or other retirement plan? Do they match your contributions? If not, you need to take your retirement savings in your own hands.

Still have doubts about the plan? Please reach out to us @ 800.472.1043 with any thoughts or questions. We’re positive we can convince you that there is a Solo 401(k) for everyone!


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