With a Solo 401(k)
Designed specifically for self-employed individuals and owner-only businesses, Alignment(k) Solo provides a streamlined path to establishing a retirement plan with simplified administration, tax-advantaged savings opportunities, and expert support from TRA.
Whether you’re a sole proprietor, independent contractor, consultant, or business owner with no employees other than a spouse, Alignment(k) Solo offers a simple way to build retirement savings while maintaining control of your financial future.
Alignment(k) Solo is built exclusively for owner-only businesses looking for a flexible retirement solution that combines ease of administration with significant savings potential.
Key Benefits
- Designed specifically for owner-only businesses
- Higher contribution potential through employee and employer contributions
- Tax-advantaged retirement savings
- Simplified plan administration
- Guided setup process
- Ongoing plan support
Alignment(k) Solo Investment Flexibility
| Feature | Alignment(k) Start | Alignment(k) Solo |
|---|---|---|
| Best For | Businesses with employees | Owner-only businesses |
| Plan Design | Streamlined standardized options | Solo 401(k) design |
| Investments | Through participating recordkeeping platform | Flexible investment options/providers |
| Financial Advisor | Advisor-friendly | Designed to work with your advisor |
| Administration | TRA | TRA |
Solo Features At A Glance
| Feature | Included |
|---|---|
| Employee Contributions | Yes |
| Employer Contributions | Yes |
| Roth Contributions | Yes |
| Catch-Up Contributions | Yes |
| Participant Loans | Yes |
| Tax-Advantaged Growth | Yes |
| Simplified Administration | Yes |
| Owner and Spouse Participation | Yes |
Why Choose Alignment(k) Solo?
Designed for Owner-Only Businesses
Built specifically for self-employed individuals and businesses with no employees other than a spouse.
Higher Contribution Potential
Make contributions as both the employee and employer to maximize retirement savings opportunities.
Tax-Advantaged Savings
Benefit from potential tax-deferred growth, tax-deductible contributions, and Roth contribution options.
Simplified Administration
Enjoy a streamlined setup process and easy-to-manage plan design tailored for owner-only businesses.
Spouse Participation
A spouse who works in the business can also participate, creating additional retirement savings opportunities.
Flexible Features
Take advantage of participant loan provisions, flexible contribution deadlines, and a dedicated retirement plan trust structure.
Backed by TRA
Receive guidance and support from experienced retirement plan professionals throughout the life of your plan.
A Great Fit If You:
- Are self-employed
- Are an independent contractor
- Operate a sole proprietorship
- Own a business with no employees other than a spouse
- Want to maximize retirement savings
- Want a retirement solution that’s simple to establish and maintain
May Not Be the Best Fit If You:
- Have eligible employees other than a spouse
- Need a retirement plan that covers employees
- Require a more complex plan design
- Need advanced retirement plan features designed for larger organizations
Your Simple Path to Getting Started
Step 1: Confirm Eligibility
Verify that your business qualifies as an owner-only business.
Step 2: Provide Your Information
Share basic business and personal information needed to establish the plan.
Step 3: Review Plan Documents
Review and approve your plan documentation.
Step 4: Establish Your Plan
Execute your plan documents and officially adopt the plan.
Step 5: Open and Fund Your Account
Coordinate with your investment provider and begin making contributions.
Step 6: Start Building Retirement Savings
Take advantage of the benefits available through your Solo 401(k).
Important Considerations
- Owner-Only Requirement: Alignment(k) Solo is intended for business owners who have no employees other than a spouse.
- Separate Trust EIN Requirement: The plan trust requires its own Employer Identification Number (EIN).
- Contribution Deadlines: Contribution deadlines may vary based on business structure and tax filing requirements.
- Spouse Participation: A spouse actively involved in the business may also participate in the plan when applicable.
Alignment(k) Solo vs. Alignment(k) Start
Not sure which solution fits your business?
| Feature | Alignment(k) Solo | Alignment(k) Start |
|---|---|---|
| Owner-Only Business | Yes | — |
| Businesses With Employees | — | Yes |
| Employee Coverage | No | Yes |
| Solo 401(k) Design | Yes | — |
| Multiple Plan Design Options | — | Yes |
| Simplified Administration | Yes | Yes |
| Ongoing Support | Yes | Yes |
Help clients choose the right 401(k) solution with a simple, guided process backed by TRA’s retirement plan expertise.
Request A Consultation
Who is eligible for Alignment(k) Solo?
Alignment(k) Solo is designed for self-employed individuals and owner-only businesses with no employees other than a spouse.
Can my spouse participate in the plan?
Yes. A spouse who earns income from the business may generally participate in the plan.
What is the contribution potential of a Solo 401(k)?
Contribution limits are established by the IRS and may change annually. Contributions may be made as both employee and employer, subject to applicable limits.
Can I make Roth contributions?
Yes. Alignment(k) Solo includes Roth contribution capability.
Are participant loans permitted?
Yes. Participant loan provisions are available within the plan.
Can I have both a SEP IRA and a Solo 401(k)?
Retirement plan coordination rules can be complex and depend on your specific circumstances. Review your situation carefully before establishing multiple plans.
Ready to start your plan?
- Start A Plan Let TRA help you build a retirement plan that's right for your business.