Solo 401(k) Tax Compliance Service

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Solo 401(k) Tax Compliance Service

Inspired by a conversation on:

Main Street Business

Main Street Business

#596 How to Set Up, Maintain, and Maximize Your Solo 401(k)

Host: Mark J Kohler and Mat Sorensen

Timestamp: 00:27:51 - 00:28:45

Listen to Episode • View Podcast • All Ideas from Main Street Business

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Feather Flow

Direct Quote

"Once your solo 401k has more than $250,000 of assets... it has to file a tax return."

Market Gap

Solo 401(k) users often overlook tax filing requirements.

Many individuals with Solo 401(k) plans are unaware of the tax compliance obligations associated with their accounts, especially when their assets exceed the $250,000 threshold. This lack of awareness can lead to serious consequences, including fines and penalties for failing to file the required tax returns. Additionally, maintaining accurate records and staying updated with IRS regulations can be daunting for self-employed individuals who are already managing their businesses. The complexity of tax compliance can result in missed opportunities for tax optimization and financial growth.

Summary

A dedicated service that assists Solo 401(k) account holders in meeting their tax compliance obligations. This service would include monitoring account balances, ensuring timely filing of the simplified tax return (5500EZ), and providing clients with updates on IRS requirements. The target audience consists of self-employed professionals and small business owners who want to avoid penalties related to tax compliance while maximizing their retirement savings. By offering this service, clients can focus on growing their businesses while having peace of mind that their Solo 401(k) is compliant with all regulations.

Categorization

Business Model
Service
Target Founder
Subject Matter Expert
Difficulty
Medium
Time to Revenue
< 1 month
Initial Investment
$1,000-$10,000

Potential MRR (18-24 months)

Conservative
$3,000 - $6,000 MRR
Moderate (Most Likely)
$10,000 - $15,000 MRR
Optimistic
$20,000 - $30,000 MRR

* Estimates assume solo founder/bootstrap scenario with competent execution

Scores

Clarity
9/10
Novelty
6/10
Feasibility
8/10
Market Potential
7/10
Evidence
8/10
Overall
7.6/10
Found on October 10, 2025 • Analyzed on October 10, 2025 5:15 PM

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A service that specializes in setting up self-directed Solo 401(k) accounts for self-employed individuals and small business owners. This service would handle all necessary documentation, including IRS pre-approved plan documents and EIN registration, while providing ongoing compliance support. The target audience includes entrepreneurs who want to maximize their retirement savings while maintaining full control over their investment options, such as real estate, crypto, and private funds. By offering a tailored approach and expert guidance, this service could alleviate the stress of navigating Solo 401(k) regulations and help clients optimize their retirement contributions.

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