Do I Qualify for a Solo401k? 2025 Eligibility Calculator

Basic Eligibility Requirements

To qualify for a Solo 401k, you must meet two main criteria:

• Have self-employment activity (any amount of self-employment income)
• Have no employees other than yourself and your spouse

Employee Rules

You can still qualify for a Solo 401k if you have:

• Independent contractors (1099 workers)
• Part-time employees who work less than 500 hours per year
• Employees under 21 years of age
• Your spouse as an employee (regardless of hours worked)
• Union employees covered by a collective bargaining agreement
• Non-resident alien employees

Current Rule (2025): Part-time employees who are 21+ years old and have worked 500+ hours/year for 2 consecutive years are eligible to participate in your plan.

Business Structure Eligibility

All business structures are eligible for a Solo 401k, including:

• Sole Proprietorships
• Single-Member LLCs
• Multi-Member LLCs
• Partnerships
• S-Corporations
• C-Corporations

Common Misconceptions

• Income Requirements: There is no minimum income requirement. Any amount of self-employment income qualifies.
• Full-Time Job: Having a full-time job doesn't disqualify you. You can have both a Solo 401k and participate in your employer's 401k.
• Business Partners: Having business partners doesn't disqualify you as long as they're not employees.
• Multiple Businesses: You can qualify with multiple businesses, but special rules may apply.

Important Deadlines

To make contributions for a tax year, you must establish your Solo 401k by December 31 of that year. For example, to make 2025 contributions, you must set up your plan by December 31, 2025.

Current Rule (2025): The eligibility service requirement for part-time employees is now two consecutive years.