If you’re self-employed or a small business owner, the latest updates to Solo 401(k) plans could impact your retirement strategy. Here are the key changes coming in 2025:

🔹 Extended Deadlines – You can now set up a Solo 401(k) up until your tax filing deadline, including extensions, for the previous tax year. More flexibility, more opportunities to save!

🔹 Higher Contribution Limits – For 2025:

• Under 50: Up to $70,000
• 50-59 & 64+: Up to $77,500 (includes catch-up)
• 60-63: Up to $81,250 with enhanced catch-up contributions

🔹 No RMDs for Roth Solo 401(k)s – Beginning in 2024, Roth Solo 401(k) accounts are no longer subject to Required Minimum Distributions (RMDs) during the account holder’s lifetime.

🔹 Part-Time Employee Rule – If you have long-term, part-time employees (working 500+ hours per year for two consecutive years), your plan may need to include them starting in 2025.

These changes create new opportunities and considerations for self-employed individuals and small business owners looking to maximize their retirement savings. If you’re navigating Solo 401(k) contributions or eligibility, now is a great time to review your strategy.

#Solo401k #RetirementPlanning #TaxUpdates2025 #SmallBusinessFinance

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.