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.

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