Go Solo

 

The Go Solo plan design satisfies IRS requirements for Individual 401(k) plans. The Individual 401(k) plan is a fairly new type of plan that allows Sole Proprietorships and businesses with no employees the ability to use a 401(k) plan structure at a reduced cost. The Go401k Group handles set up and on-going administration of the plan at a reduced rate because the Go Solo plan requires less paperwork then traditional 401(k) plans and does not require non-discrimination testing. Individual 401(k) plans are also not required to file a form 5500 until the total assets within the plan are above $100,000.  

 

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Eligibility Requirements:

• 1 year of service with at least 1000 hours of service.

• Attainment of age 21.

Entry Dates:

• Either 1/1 or 7/1 once eligibility requirements are met.

Matching Contributions:

• A matching contribution up to 3% of each participant's pay.

Vesting:

• Any and all contributions are immediately 100% vested.

Loans/Hardships:

• Loans and Hardship withdrawals are permitted.

• Minimum loan amount is $1,000.

• Maximum loan amount is one half the vested account balance but no more than $50,000.

• Participants are not permitted to have more than two loans outstanding at any time.

Maximum Deferral Amount:

• The IRS Limit: 16,500 for 2011

Catch Up Contribution:

• The IRS Limit: 5,500 for 2011

Profit Sharing Contribution Limit:

• The IRS Limit: The lesser of 25% of compensation or $49,000 in 2011

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