Solo(k) Plan Installation Application

A one participant 401(k) plan is sometimes called a Solo(k), Uni(k) or Individual(k). They are all the same type of plan. The Solo(k) plan is a Traditional 401(k) Plan covering a business owner(s) or the owner(s) and his or her spouse. These plans have the same rules and requirements as any other 401(k) Plan. It is imperative to note that it must be a set up under a business and if the business hires employees, they must be monitored and if they have an employee that meets the eligibility requirements, they are full Traditional 401(k) Plan and all testing rules apply.

Solo(k) FAQs

Step 1 of 7

EIN Parameters

The IRS requires an EIN to establish a Solo(k) Plan. Since a Solo(k) is a qualified retirement plan, it has to be sponsored by a business entity. The EIN used to setup a retirement plan must not be the same as a personal Social Security Number. For more information on the EIN parameters, click here.

Entity

Entity(*)

Date Business Commenced(Required)

If LLC, how are you taxed?(Required)

If other, please explain

Fiscal Year End(Required)

Day(Required)

Please enter a number from 1 to 31.

6 Digit Business Code(Required)

This code tells the IRS what type of company you are (i.e. Manufacturing, Retail, etc.). This can be found on your company's tax return.

You can also look up your employer code by clicking HERE

Contact

Authorized individual able to give/receive confidential information to/from NAI. This should be from the company and NOT the Advisor contact information.

Primary Contact (PC) Name(Required)

Not the advisor

Title (PC)(Required)

Email (PC)(Required)

Preferred Method of Contact (PC)

Secondary Contact Information (if applicable)

Secondary Contact Name (SC, If primary is unavailable)

Title (SC)

Email (SC)

Preferred Method of Contact (SC)

Ownership Information

Only you (Business Owner) along with your Spouse can setup a Solo(k). You cannot setup a Solo(k) if you have any Non-Spouse family member or any Employee that satisfies eligibility, which is Age 21 and 1,000 hours performed in any given year. Contact NAI if there are more than 3 other businesses owned.

Owner Name(Required)

Business Name(Required)

% Owned(Required)

Please enter a number from 0 to 100.

Owners

Owner Name

Business Name

% Owned

Please enter a number from 0 to 100.

Add additional Owners by clicking the plus sign

Does the company have any other share class of company stock?(Required)

What is a Controlled Group or an Affiliated Service Group (ASG)? These rules come into play when the owners of one company also has ownership interest in another firm(s). A simple example of a Controlled Group would be if someone owned 100% of 2 companies. When An owner and their spouse both own companies, there may be rules that come into play that may not allow a Solo (k) Plan to be set up. An Affiliated Service Group is where there may not be actual common ownership to create a Controlled Group, one of the companies exist basically for the purpose of supplying services or goods to another. Please complete the below information for any company(s) that you form a Controlled Group or an ASG. Why is it important? Should two related companies form a controlled group, the IRS views them as basically a single employer. If the other employer involved does have employees and the companies form either a Controlled Group or an ASG, then a Solo 401(k) Plan might not be able to be established. The actual rules regarding Controlled Groups and ASGs can be very complex. If you (or your spouse) own any other businesses, you should consult with your CPA to confirm if an ASG or Controlled Group exists. If the other business(es) involved do not have any employees, then it shouldn’t be an issue. Note, any income earned from companies that form a Controlled Group or an ASG is automatically INCLUDED for these plan purposes. If you do wish to exclude the income from a Controlled Group or ASG situation, please contact our office and we can make that change for you.

After contacting your CPA, do you form a Controlled Group of Corporations?(Required)

Business Name

Owner(s)

Percentage

Please enter a number from 0 to 100.

Business Name

Owner(s)

Percentage

Please enter a number from 0 to 100.

Business Name

Owner(s)

Percentage

Please enter a number from 0 to 100.

After contacting your CPA, do you form an Affiliated Service Group?(Required)

Business Name

Owner(s)

Percentage

Please enter a number from 0 to 100.

Business Name

Owner(s)

Percentage

Please enter a number from 0 to 100.

Business Name

Owner(s)

Percentage

Please enter a number from 0 to 100.

Advisor Information

Please add all Advisors that we should cc on any plan communication

Company(Required)

Street Address(Required)

City, State and Zip Code(Required)

Advisor(Required)

Phone(Required)

Email(Required)

Advisors

Advisor Office Contact

Phone

Add additional office contacts by clicking the plus sign

Plan Investments

NAI should be set up to receive copies of at least annual statements. Roth accounts are required to have a separate account from the pre-tax account.

Investment Product to be used (mark all that apply)(Required)

Brokerage Account such as Northwestern Mutual/RW Baird/Schwab, etc.

Investment Platform (such as Nationwide, Principal, etc.)

Life Insurance

Annuities

Other

If 'Other', please explain:

All plans assets are required to be added together to determine if a 5500 EZ Form is required. Thus, do you currently maintain a DB/Cash Balance Plan?(Required)

Please provide contact information for the company that handles your DB/Cash Balance Plan (e.g. Name, Phone #, Email)(Required)

Is it the intention to start a DB/Cash Balance Plan?(Required)

Plan Design/Setup

I understand that NAI should be setup to receive copies of at least annual statements.(Required)

Please check this box if you want to proceed.

I understand that I need to setup a separate Roth investment account for any Roth dollars contributed. Any Roth contributions should be kept separate from Pre-Tax contributions.(Required)

Please check this box if you want to proceed.

Existing or New Solo(k) Plan?(Required)

If you are intending on setting this up for the previous year, deferrals cannot be made for the previous year. If you have filed your taxes already, you also cannot setup a plan for the previous year. Employer contributions are only allowed and documents must be established by your tax filing deadline and employer contributions must be made prior to your tax filing deadline. Plans cannot be funded until IRS Documents are signed and in place.

If existing plan:
Provide NAI with the current Adoption Agreement in place.

Original Effective Date(Required)

Current Asset Value(Required)

Outstanding Loan Amount (if applicable)

Which Plan Year is this for?(Required)

New and existing plans: NAI will use the default plan design setting for all solo(k) plans

Plan Trustees

This cannot be NAI and should be someone at the company or your representative. In most cases just the Business Owner is the Plan Trustee.

Name(Required)

Corporate Title(Required)

Plan Trustees

Name

Corporate Title

Add additional Trustees by clicking the plus sign

Miscellaneous

Plan Fees see Solo(k) Fee Schedule.

Employer will pay NAI fees (not deducted from plan assets).
Additional charges for processing transactions (distributions/loans).
Additional charges for preparing 5500 EZ form (if necessary).
Additional charges for not providing copies of statements to NAI.
Additional charges for putting Roth and Pre-Tax in one account.
Additional charges for assistance with contribution calculations or limits.

Restatement Charges

The IRS now requires all plans to restate their plan document every six years to incorporate the language of the laws that are passed during that period. The fees for restatement also include the mandatory amendments that would be needed as well during the 6 year period (usually around 3 amendments are required).

The one time fee for restatement will be $250

Select Restatement Fee Preference(Required)

Employee Census

List all employees including owner(s)

Employees

Name(Required)

SSN(Required)

Date of Birth(Required)
MM slash DD slash YYYY

Date of Hire(Required)
MM slash DD slash YYYY

Add additional Employees by clicking the plus sign

Life Insurance

Are there any life insurance policies on the plan?(Required)

Union Employees

Are there any union employees working for the employer?(Required)

If yes, please provide a census of those employees

Leased Employees

Are there any leased employees working for the employer?(Required)

If yes, please provide a census of those employees

Fidelity Bonds

Plans where the owner(s) or the owner(s) and the owner's spouse are the only employees that are exempt from the fidelity bond requirements.

Accountant or CPA Information

For us to provide any information to your CPA we will need to have this information on file.

Company name

Contact

Phone

Email

Signature

For more information or questions on setting up a Solo(k), please call NAI at (920) 733-7141 or Michelle at (920) 560-5689

Signature of Individual Submitting This Form(Required)

Date(Required)
MM slash DD slash YYYY

Phone
This field is for validation purposes and should be left unchanged.

Solo(k) Plan Installation Application

Company Information

EIN Parameters

Entity

Contact

Secondary Contact Information (if applicable)

Ownership Information

Owners

Advisor Information

Advisors

Plan Investments

Plan Design/Setup

Plan Trustees

Plan Trustees

Miscellaneous

Restatement Charges

Employee Census

Employees

Life Insurance

Union Employees

Leased Employees

Fidelity Bonds

Accountant or CPA Information

Signature

Live Person Phone Calls

Compliance Guarantee

Experienced Staff

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