EZ Solo 401(k) Plan

• Streamline your retirement savings with the EZ Solo 401(k) Plan. Simplify the process of managing your 401(k) contributions and investments effortlessly. Access a user-friendly platform designed to make retirement planning easy and efficient. Start securing your financial future today with the EZ Solo 401(k) Plan.

  Before beginning, ensure you have the following information:

  • Company information (legal name, address, ownership, EIN, etc)
  • Access to a valid email address
  • Desired Plan Year effective date
    • If the prior year is desired, note these requirements:
      • You cannot have filed your prior year’s corporate taxes
      • Plan document and deposits must be completed prior to filing your prior year’s corporate taxes

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  Items to Note:

  • These documents are for the sole use of The Retirement Advantage’s Solo(k) Plans. Solo(k) Plans may not be utilized for companies that have eligible employees other than the owner(s). If an employee becomes eligible for the plan in the future, the plan can be amended to another type of 401(k) plan administered by TRA that is designed for business owners and employees.
  • If you intend to have or have a Defined Benefit plan in addition to this plan, please consult with a TRA Retirement Plan Consultant. Do not move forward with signing these documents.
  • If you sponsor a SEP plan under IRS model document 5305, you cannot also sponsor a 401(k) plan in the same plan year. Generally, the SEP plan must first be terminated, at which point a 401(k) plan may commence the following year. If the plan will not be funded in the current plan year, but was not terminated in the prior plan year, please discuss further with your TRA consultant to determine if it is feasible to sponsor a 401(k) plan in the current plan year.
  • Deferral Elections and Deposit Deadlines:
    • If the business is unincorporated, a salary deferral election can elect to make 401(k) salary deferrals for a year even if they adopt a plan after the end of the plan year if adoption and deferral are made before the tax return due date for the year of adoption. The deadline for depositing salary deferrals is generally the due date of the company’s tax return (April 15^th or extended date).
    • *It is recommended that contributions (such as salary deferrals) not be deposited to the plan until the earned income is determined for the plan year, as the compensation utilized for plan purposes may not support the elected contribution amount.

  • If the business is incorporated, a salary deferral election specifying the amount intended to be deferred, must be completed before the compensation is paid. This means the business owner must have some form of compensation such as regular salary, bonuses, or commissions that they have not received prior to signing the salary deferral election form but would be received by the last day of their fiscal year. Compensation must be received only from the business sponsoring the plan. Do not use compensation from an unrelated employer. For S-corporations, Schedule K-1 dividend distributions cannot be used as compensation. Contributions made no later than the 7th business day following the day on which the amounts would have been payable to the participant in cash (i.e. on their paycheck) would be considered timely.
    • Salary deferral election forms along with beneficiary election forms are available on TRA’s website at www.tra401k.com

  • If assets will be held in brokerage accounts, it is necessary to associate a Trust Identification Number (TIN) with the Plan, rather than using the employer identification number for the company. This number separates the plan assets from the company assets. TRA will assist with the necessary filing to the IRS unless a TIN has already been established. Once the filing process is completed and a TIN is provided, TRA will forward the TIN to you and your Financial Advisor (if applicable) to set-up the trust account(s) for the plan.
  • In general, the deadline for establishing a Solo(k) Plan is the last day of the business’s fiscal year, typically December 31st. Executed plan documents must be completed by this date. Note, unincorporated sole practitioners can elect to make 401(k) salary deferrals for a year even if they adopt a plan after the end of the plan year if adoption and deferral are made before the tax return due date for the year of adoption.