A Solo 401(k) is a retirement plan for business owners who have no other full-time employees other than the owner and, if married, their spouse. A Self-Directed Solo 401(k) plan is ideal for those who make self-employed income and are interested in generous contribution limits that can grow tax deferred. Those with an S Corp can open a SEP-IRA at Rocket Dollar.
For 2018, the total contribution limit is $55,000, with a maximum employee contribution of $18,500 and $36,500 from employer contributions.
For 2019, the total contribution limit is $56,000, with a maximum employee contribution of $19,000 and $37,000 from employer contributions.
Compared to an IRA, the annual contribution limit of a Self-Directed Solo 401(k) is ten times that of IRAs.