Solo-K Eligibility

Do I Qualify?

Exceptions - Who would not be Considered Common-Law Employees

Exceptions - Who would not be Considered Common-Law Employees

In general, it is very easy to qualify as self-employed. As long as you have a legitimate business with the intent of generating income/profit, and meet the two following eligibility requirements:

Part-time or full-time self-employment activities; and,

No presence of any common-law, full-time employees (other than a spouse or business partner).

Exceptions - Who would not be Considered Common-Law Employees

Exceptions - Who would not be Considered Common-Law Employees

Exceptions - Who would not be Considered Common-Law Employees

Who is a common-law employee?

Who is not a common-law employee?

Employees under the age of 21;

Employees who are working less than 1,000 hours per year; and,

Legitimate usage of 1099 independent contractors

Don't Play Games - Follow the Rules!

Exceptions - Who would not be Considered Common-Law Employees

Don't Play Games - Follow the Rules!

It doesn’t take much for your business to sponsor a Solo-K. Whether you are a sole proprietor, LLC, S-Corp, C-Corp or partnership, you are able to sponsor the plan. 

The IRS will Require

Participate in More than One 401(k) Plan?

Don't Play Games - Follow the Rules!

  1. You must carry on a trade or business as a sole prop or an independent contractor; 
  2. You are a member of a partnership that carries on a trade or business; 
  3. You are in business for yourself; 
  4. You are running a business with the intent of making a profit; and, 
  5. You can operate your business as a part-time business.

Other Tids and Bits

Participate in More than One 401(k) Plan?

Participate in More than One 401(k) Plan?

Hobbies - A hobby does not qualify for self-employment.

Being an Independent Contractor - Make sure you qualify for being an independent contractor.

1099 Contractors - If you retain the services of an independent contractor, make sure they qualify for an independent contractor vs. being considered your common-law employee!

Spouse - Your spouse can participate in the plan, rollover funds into the plan and make contributions as long as they are a legitimate participant in the business.




Participate in More than One 401(k) Plan?

Participate in More than One 401(k) Plan?

Participate in More than One 401(k) Plan?

Yes, you can. The IRS does not stipulate how many 401(k) plans you can participate in, only that you qualify and comply with contribution limits.