A Solo 401(k) is a retirement plan specifically designed for self-employed individuals or small business owners with no employees, except for a spouse. Below, you will find a compilation of plan highlights for the Everyday 401(k) by J.P. Morgan - Solo.
Eligibility
- Any leased employee, for purposes of elective deferral contributions and non-elective contributions, is excluded from the plan.
- Upon signing up, the owner and their spouse can participate in the plan immediately and are not subject to the eligibility requirements.
- You will enter the plan on the first day of the first month and the seventh month of the plan year, coincident with or next following the time you meet the eligibility criteria specified. Under certain circumstances, you may be automatically enrolled in the plan. A notice will be provided with details prior to the beginning of each plan year.
- Note: This does not apply to owners and/or spouses.
Contributions
- Elective Deferral: You may elect to defer up to 100% of your plan compensation on a pre-tax basis. You may also elect to make Roth contributions to the plan on an after-tax basis. You may elect to change your elections to contribute to the plan as of each pay period. Federal law also limits the amount you may elect to defer under the plan ($24,500 in 2026). However, if you are age 50 or over, you may defer an additional amount up to $8,000 (in 2026). These dollar limits are indexed; therefore, they may increase each year for cost-of-living adjustments.
- Non-Elective Contributions: You, as the business owner and employer, may, in your sole discretion, make an elective employer contribution to you, your spouse, and any other eligible participant who is employed as of the last day of the year.
- Rollovers: The plan may accept a rollover contribution made on behalf of any employee not excluded from the plan, regardless of whether such employee has met the age and service requirements of the plan.
Investing Plan Contributions
You may direct all your accounts' investments in one or more of the available investment funds.
Distributions and Loans
Distributions:
You may receive a distribution from the plan under the following circumstances:
- Immediately after your employment terminates
- Hardship
- After age 59.5
- From the transfer account when you reach 59.5
- From the rollover contribution account at any time
- Rollovers accepted from all employees, even if not yet participating; direct rollovers from qualified plans and IRAs (traditional only), no after-tax
- Qualified birth or adoption distribution
- Death
- Disability
Loans:
The minimum loan amount is $1,000 and the maximum number of loans outstanding is 1. Please see your loan procedures for additional details on taking a loan from the plan.
Summary of Default Provisions
- Compensation Considered: Gross taxable compensation, reported on Form W2, adding back pre-tax deferrals (e.g., 401(k), cafeteria plan deductions); no exclusions
- In-Service Distributions: Employees may withdraw from accounts while employed from rollover accounts at any time; and from all fully vested sources upon attainment of age 59-½
See your plan document for more information.