MAP SOLO Advantage exclusively for Northwestern Mutual advisors and clients.

MAP SOLO Advantage exclusively for Northwestern Mutual advisors and clients.

Set up or transfer your Solo plan in as little as 10 minutes.

Access to a valid e-mail account is necessary to complete all plan documents, and must be done by the primary owner, signer of all plan trust documents. (Mail verification required before you can complete the form.)

The forms must be completed online. Printed or faxed versions of these documents will not be accepted. Payment is due upon processing by direct debit of your bank account. Account information is required and will be debited annually each January. Please contact your MAP Rep if you have questions.

Nature of Business and NAICS code: To find the code for your business, please use this link. Nature of Business – If you operate a consulting company, please distinguish what type of consulting. This will change the NAICS code based on the type of consulting.
North American Industry Classification System (NAICS) U.S. Census Bureau

Starting a new plan for the first time?

Make sure you have the following information:

  • Company information like name, address, company EIN (see note below for sole proprietors, a TIN is recommended for any brokerage account), incorporation date, fiscal year end, etc.
  • Contact information for all owners / employees.
  • Plan Year effective date. A determination whether you want to make contributions starting with the current tax year (e.g., 2024) or also the prior year (e.g., 2023). Consult with your accountant if necessary.
  • Bank account information
  • Your NM Advisor representative code – ask your advisor
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Moving an existing plan to Solo Advantage

Make sure you have the following information:

  • Current Plan information. (Reference your adoption agreement, any other plan documents.)
  • All company information like name, address, company EIN (see note below for sole proprietors, a TIN is recommended for any brokerage account), incorporation date, fiscal year end, etc.
  • All current signed plan documents and account statements must be submitted to MAP Retirement upon completion.
  • Contact information for all owners / employees.
  • Bank account information
  • Your NM Advisor representative code – ask your advisor

Please note the following items for new plans:

  • You may complete this form to establish a plan (and make contributions) beginning with the current tax year or prior tax year.
  • IMPORTANT: To establish a plan and make contributions for the prior tax year:
    • You cannot have filed your tax return for the prior tax year.
    • Your tax filing date (including any applicable extensions) must not have passed yet. (E.g., you must be able to file your tax return timely still.)
    • Plan document and deposits must be completed prior to filing your prior year’s corporate taxes.
    • You do not have a SIMPLE IRA or SEP in the tax year you are making your first contribution.
  • Please consult your CPA or tax professional if you have questions regarding the status of your tax filing for the prior year.
  • If you are operating as a sole proprietor, please be aware that a federal EIN is required to sponsor an employer-sponsored tax-qualified retirement plan. You may apply for an EIN at the link below. The process generally only takes a few minutes, and you will immediately be provided an EIN online by the IRS. https://sa.www4.irs.gov/modiein/individual/index.jsp

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Please note the following items for all plans:

  • Upon completion of this process your plan and trust will be established or moved. You will be completing legally binding agreements, plan and trust documents that are enforceable upon final submission.
  • Please be aware the engagement agreement and the plan document that will be completed are intended for Owner-Only 401(k) Plans. These documents are only intended for companies with no employees (other than the owners), which includes any company under common control or ownership. If you have questions, please contact your MAP Retirement Sales Consultant. If an employee becomes eligible for the plan in the future, the Solo plan will be amended by MAP Retirement to a design for business owners and employees. Trustees agree to supply MAP Retirement complete and accurate information requested each year.
  • If you intend to have or have had a Defined Benefit plan in addition to this plan, please consult with a MAP Retirement Plan Consultant. Do not move forward with signing these documents.
  • If you sponsor a SEP plan under IRS model document 5305, you cannot also sponsor a 401(k) plan in the same plan year. Generally, the SEP plan must first be terminated, at which point a 401(k) plan may commence the following year. If the plan will not be funded in the current plan year, but was not terminated in the prior plan year, please discuss further with your MAP consultant to determine if it is feasible to sponsor a 401(k) plan in the current plan year.
  • Deferral Elections and Deposit Deadlines:
    • If the business is unincorporated, a salary deferral election can elect to make 401(k) salary deferrals for a year even if they adopt a plan after the end of the plan year if adoption and deferral are made before the tax return due date for the year of adoption. The deadline for depositing salary deferrals is generally the due date of the company’s tax return (April 15thor extended date).
    • It is recommended that contributions (such as salary deferrals) not be deposited to the plan until the earned income is determined for the plan year, as the compensation utilized for plan purposes may not support the elected contribution amount.
    • If the business is incorporated, a salary deferral election specifying the amount intended to be deferred must be completed before the compensation is paid. This means the business owner must have some form of compensation such as regular salary, bonuses, or commissions that they have not received prior to signing the salary deferral election form but will receive by the last day of their fiscal year. Compensation must be received only from the business sponsoring the plan. Do not use compensation from an unrelated employer. For S-corporations, Schedule K-1 dividend distributions cannot be used as compensation. Contributions made no later than the 7th business day following the day on which the amounts would have been payable to the participant in cash (i.e., on their paycheck) would be considered timely.
    • Salary deferral election forms along with beneficiary election forms are included with this process.
  • If assets will be held in brokerage accounts, it is necessary to associate a Trust Identification Number (TIN) with the Plan, rather than using the employer identification number for the company. This number separates the plan assets from the company assets. MAP will assist with the necessary filing to the IRS unless a TIN has already been established. Once the filing process is completed and a TIN is provided, MAP will forward the TIN to you and your Financial Advisor (if applicable) to set up the trust account(s) for the plan.
  • Please note: Long-Term Part-Time Employees (LTPTE) are eligible to contribute to your plan if they work more than 500 hours (less than 1,000) in two consecutive plan years. Reporting of all employees and hours worked is required.

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Plan Design and specifications for all plans:

(any current plan transferring to MAP Solo Advantage will adopt these provisions)

  • Plan Year End: 12/31.
  • Pre-tax and Roth deferrals, Employer Matching and Profit-Sharing contributions.
    • Pre-tax and Roth deferrals require separate investment accounts and cannot be co-mingled in the same advisory / brokerage account.
  • Auto enrollment of all employees at 3% pretax contribution.
  • Service/Age eligibility requirements: 1 Year of Service, Age 21, 1000 hours worked.
  • Entry dates: Semi-annual.
  • Special election day for all current employees to enter the plan.
  • Rollovers allowed.
    • W-2 compensation (unless earned income), excluding fringe benefits and compensation earned prior to the entry date of the plan.
  • 100% vested.
  • Hardships allowed from all fully vested accounts, extended to beneficiaries.
  • In-service distributions or withdrawals available at age 59 ½ from all fully vested accounts
  • Loans will be allowed.
  • After-tax money sources are not standard in a solo(k) plan. The source can be added by amendment.
    • This requires an additional advisory/brokerage account. After-tax dollars cannot be combined with pre or post tax (Roth) money sources.
  • Pre-tax conversion to Roth are permitted but require additional calculations, possible tax payments, additional cost.