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New Member
posted Jun 4, 2019 8:30:17 PM

Is a Solo 401k a qualified or unqualified plan

  I am unsure what is really meant by qualified so obviously I'm not going to guess.

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New Member
Jun 4, 2019 8:30:19 PM

Yes, your Solo 401(k) plan, also called an individual 401(k), a one-participant plan, self-employed 401(k) or self-directed 401(k) plan is a qualified retirement plan.

A qualified plan is basically a retirement plan sponsored by employer for the exclusive benefit of employees. These plans follow special IRS rules and qualify for special tax treatment, such as deferring paying taxes on the contributions until retirement.

Please click the link IRS - Common Qualified Plan Requirements for more information.

1 Replies
New Member
Jun 4, 2019 8:30:19 PM

Yes, your Solo 401(k) plan, also called an individual 401(k), a one-participant plan, self-employed 401(k) or self-directed 401(k) plan is a qualified retirement plan.

A qualified plan is basically a retirement plan sponsored by employer for the exclusive benefit of employees. These plans follow special IRS rules and qualify for special tax treatment, such as deferring paying taxes on the contributions until retirement.

Please click the link IRS - Common Qualified Plan Requirements for more information.