How do contribution limits for Solo 401(k) plans compare to traditional employer-sponsored 401(k)s for individuals in the healthcare field?

For 2025, Solo 401(k) contribution limits are higher than traditional 401(k)s because they include both employee and employer contributions. This feature can significantly increase the amount you save compared to traditional employer-sponsored plans available in the healthcare industry.

To keep your Solo 401(k) in good standing, you need to follow IRS rules. For 2025, the maximum employee contribution is $22,500 if you're under 50, or $30,000 if you're 50 or older. Employers can contribute up to 25% of compensation, with the total limit at $66,000, or $73,500 with catch-up contributions.

Contribution deadlines depend on your business type. For sole proprietors, the employee deferral and employer contributions must be done by the personal tax filing deadline, usually April 15, possibly extended to October 15.

Record-keeping is vital. You need to file Form 5500-EZ annually if your plan assets exceed $250,000. This form helps the IRS monitor compliance. Keep documents organized to avoid potential audits. For more detailed guidance, check resources on Solo 401k compliance

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