Solo(k): Owner Information

First
Name

Last
Initial

Year of Birth

Year of Hire

Estimated Self-Employment Earnings

Anticipated Salary
Deferral

Other Compensation?

YES NO

Business Owner Information

First Name: Enter the business owner's first name

Last Initial: Enter the first initial of the business owner’s last name

Year of Birth: Enter the business owner’s year of birth (YYYY)

Year of Hire: Enter the first year in which the business owner worked for the sponsoring business (YYYY)

Estimated Self-Employment Earnings: Enter the business owner's estimated net earnings from self-employment. Generally, net earnings are equal to the self-employed business owner's gross income from the trade or business (provided the business owner's personal services are a material income-producing factor) minus allowable business deductions. For purposes of this tool, the earnings entered here are presumed to be net earnings prior to any deductions for self-employment taxes and, if applicable, any deductions for retirement plan contributions made on behalf of common-law employees.

Anticipated Salary Deferral: Enter the business owner’s anticipated salary deferral. The business owner’s anticipated salary deferral may be comprised of pre-tax contributions, designated Roth contributions, or a combination thereof. (Note: “Designated Roth contributions” are not excluded from the participant’s taxable income in the year of deferral.)

Other Compensation? Indicate whether the business owner will have taxable compensation during the applicable year from any sources other than the business for which retirement plan contribution modeling is being done.

Business Owner Information

First Name: Enter the business owner's first name

Last Initial: Enter the first initial of the business owner’s last name

Year of Birth: Enter the business owner’s year of birth (YYYY)

Year of Hire: Enter the first year in which the business owner worked for the sponsoring business (YYYY)

W-2 Compensation: Enter the business owner's estimated gross income reported on IRS Form W-2 (Wage and Tax Statement).

Business Owner Information

First Name: Enter the business owner's first name

Last Initial: Enter the first initial of the business owner’s last name

Year of Birth: Enter the business owner’s year of birth (YYYY)

Year of Hire: Enter the first year in which the business owner worked for the sponsoring business (YYYY)

X Other Compensation?

This modeling tool includes calculations to estimate the self-employment taxes that will be payable on the business owner's self-employment earnings entered in the "Estimated Self-Employment Earnings" field. In situations where the business owner has other taxable compensation for the given modeling year, the calculation assumptions incorporated within this modeling tool may not accurately reflect the business owner's "compensation" for plan contribution modeling.

+ + Add Owners

Solo(k): Employee Information

First
Name

Last
Initial

Year of Birth

Year of Hire

+ Add Employees

Employee Information

First Name: Enter the employee's first name

Last Initial: Enter the first initial of the employee’s last name

Year of Birth: Enter the employee’s year of birth (YYYY)

Year of Hire: Enter the first year in which the employee worked for the sponsoring business (YYYY)

Tool Methodology and Assumptions

Solo 401(k) Tool Methodology and Assumptions

Controlled Groups
If one or more owners of a business has either direct or indirect ownership interests in multiple businesses, the businesses may need to be aggregated and treated as a single business for retirement plan coverage/compliance purposes pursuant to Internal Revenue Code (IRC) Secs. 414(b) and (c). For purposes of this modeling tool, it is assumed that the business for which plan modeling is done is not part of a controlled group under IRC Secs. 4154(b) or (c).

Service Requirement
When sponsoring a Solo 401(k) plan, employers may elect to impose a requirement that employees (including business owners) must complete a "year of service" before becoming eligible to participate in the plan. For purposes of calculating plan eligibility, this modeling tool assumes that each business owner works 1000 hours or more each year (including the business owner's Year of Hire). This modeling tool should not be used in situations where one or more business owners do not consistently work 1000 hours or more per year.

Excludable Categories of Employees
For a self-employed individual's income from his or her business to be considered eligible compensation for retirement plan contribution purposes, the individual's personal services must generally be a material income-producing factor. For purposes of this modeling tool, it is assumed that amounts entered as "Estimated Self-Employment Earnings" for unincorporated business owners meet this requirement.

Estimated Self-Employment Earnings
For a self-employed individual's income from his or her business to be considered eligible compensation for retirement plan contribution purposes, the individual's personal services must generally be a material income-producing factor. For purposes of this modeling tool, it is assumed that amounts entered as "Estimated Self-Employment Earnings" for unincorporated business owners meet this requirement.

Calculations of "Estimated Earned Income" for Sole Proprietors and Partnerships
For a self-employed individual's income from his or her business to be considered eligible compensation for retirement plan contribution purposes, the individual's personal services must generally be a material income-producing factor. For purposes of this modeling tool, it is assumed that amounts entered as "Estimated Self-Employment Earnings" for unincorporated business owners meet this requirement.

Pro Rata Allocations
Profit Sharing contributions to the Solo 401(k) plan are assumed to be allocated to all eligible plan participants on a pro-rata basis based on the contribution percentage selected within the plan modeling tool. (Note: Some Solo 401(k) plan documents may allow other methods of allocating plan contributions between eligible plan participants

No Other Plans
For purposes of this plan modeling tool, it is assumed that the employer does not maintain any other employer-sponsored retirement savings plan.

The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

The retirement calculator is for hypothetical purposes only and does not guarantee that your account will increase in value. Past performance is not an indication of future results. For illustrative purposes only. Individual situations will vary.

Does this business employ common-law employees?	YES NO
As the name implies, owner-only 401(k) plans (i.e., Solo(k) plans) are a type of retirement product built specifically for businesses that qualify for owner-only coverage. As a general rule, Solo(k) plans are generally geared toward businesses that employ only the business owner(s) or the business owner(s) and his or her spouse. While there are limited circumstances under which a small business with common-law employees may qualify for a Solo(k) plan, the rules governing such situations are quite complex and beyond the scope of this modeling tool. To model another type of business retirement plan, click here.
For what tax year would you like to do contribution/coverage modeling?	2023 2024

Age Requirement	Or, No age requirement
Service Requirement	1 year of service required No service requirement

Solo(k): Business Information

What type of business are you modeling? (Sole Proprietorship/Partnership or Corporation)

Solo(k): Business Information

Does this business employ common-law employees? (Yes/No)

For what tax year would you like to do contribution/coverage modeling?

Solo(k): Plan Eligibility Requirements

Age Requirement

Service Requirement

Solo(k): Owner Information

First
Name

Last
Initial

Year of Birth

Year of Hire

Estimated Self-Employment Earnings

Anticipated Salary
Deferral

Other Compensation?

Business Owner Information

Business Owner Information

Business Owner Information

+ + Add Owners

Solo(k): Employee Information

First
Name

Last
Initial

Year of Birth

Year of Hire

Has the employee worked at least 1000 hours or more in any year prior to the year for which contributions are being projected?

+ Add Employees

Employee Information

Solo(k): Plan Contribution Modeling for

Contribution Percentage:

Name

Owner

Eligible

Estimated Aggregate
Contribution

Estimated Profit Sharing/
Anticipated Salary Deferral

Solo(k): Business Information

What type of business are you modeling? (Sole Proprietorship/Partnership or Corporation)

Solo(k): Business Information

Does this business employ common-law employees? (Yes/No)

For what tax year would you like to do contribution/coverage modeling?

Solo(k): Plan Eligibility Requirements

Age Requirement

Service Requirement

Solo(k): Owner Information

FirstName

LastInitial

Year of Birth

Year of Hire

Estimated Self-Employment Earnings

Anticipated Salary Deferral

Other Compensation?

Business Owner Information

Business Owner Information

Business Owner Information

+ + Add Owners

Solo(k): Employee Information

FirstName

LastInitial

Year of Birth

Year of Hire

Has the employee worked at least 1000 hours or more in any year prior to the year for which contributions are being projected?

+ Add Employees

Employee Information

Solo(k): Plan Contribution Modeling for

Contribution Percentage:

Name

Owner

Eligible

Estimated Aggregate Contribution

Estimated Profit Sharing/Anticipated Salary Deferral

First
Name

Last
Initial

Anticipated Salary
Deferral

First
Name

Last
Initial

Estimated Aggregate
Contribution

Estimated Profit Sharing/
Anticipated Salary Deferral