MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Can a Business Owner Have a SOLO 401k?

6 Aug 2025 · 0 min

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0:27

In this brief segment, Mark Kohler explains that business owners who own 50% or more of a company that employs staff are ineligible for a Solo 401(k) plan. He clarifies that this restriction exists to ensure that employees have access to retirement options, such as traditional 401(k) or safe‑harbor plans. While acknowledging the limitation for owners, Kohler emphasizes that participating in a 401(k) is beneficial for everyone, regardless of ownership status.

If you own 50% or more of any business that has employees, you cannot do a solo case. And now, Matt says sadly, but I want to say the flip side of that is there's a purpose here so that employees are going to be allowed to have a place to do retirement planning and a 401k safe harbor. And it's not the worst thing in the world, the safe harbor plans either. But yeah. So there's two ways to look at it. Business owners are like, but, you know, in the big scheme of things, the 401k is amazing. We all should be participating in 401ks, whether we're a business owners or not.