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Investing Blog Roundup: Solo 401(k) and the “Age 55 Rule”

A question that comes up from time to time regarding solo 401(k) plans is whether self-employed people with such a plan could ever take advantage of the “age 55 rule.” The tricky point is that you have to “separate from service” in order to take advantage of that rule. And, if you have separated from service (i.e., you’re no longer doing the self-employed work in question), would you still count as an “employer” in order to maintain the plan, or does the plan have to be rolled into an IRA?

Sean Mullaney recently did a deep dive into that topic, and I find his reasoning convincing:

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