OVERVIEW There are only two eligibility requirements for a solo 401k: Business owners with any type of business entity can open a solo 401k as long as they generate income and they don’t have employees. But what happens if you decide to hire a full-time W-2 employee, and you’re no longer self-employed? Can you keep your account, or […]
OVERVIEW The solo 401k and SEP IRA are retirement accounts created for small business owners and self-employed individuals. Both have the same contribution limits, offer tax-free compounding on investments, and all business entities are eligible. A solo 401k offers more tax advantages than a SEP IRA, but has stricter eligibility requirements. Depending on your business, one might make […]
SIMILARIES DIFFERENCES Both the Roth Solo 401k and the Roth IRA are funded with post-tax dollars. You contribute with income that’s already been taxed, but you don’t pay any taxes when you withdraw from either of the two accounts in retirement. In other words, your money compounds tax free, and then you get to keep […]
A 401k is an employer-sponsored retirement plan. Without an employer, you cannot participate in a traditional company 401k plan. However, there are some strong alternatives that offer even better benefits and tax-advantages than a normal 401k. Perhaps you’re already employed, but your company just doesn’t have a 401k plan that they offer to employees. 401k […]
Any business entity is eligible to open and contribute to a solo 401k plan as long as they meet the general solo 401k eligibility rules. An S corporation is also allowed to open a solo 401k, but there’s one additional eligibility rule if it has multiple shareholders. Here’s everything you need to know about opening a solo […]
LLC stands for Limited Liability Company, and it’s one of the most common business structure in the U.S. An LLC, and any other business structure is eligible to open a solo 401k. However, there’s a small difference in how employer contributions get calculated depending on if your LLC is incorporated or taxed as a sole proprietorship. […]
The highest contribution limits, ability to invest in any asset class with tax-free compounding, and a supersized Roth account.
SOLO 401K BENEFITS: Considering a solo 401k? Here’s a quick breakdown of every benefit and tax advantage a solo 401k account can give you. High contribution limits The solo 401k has one of the highest contribution limits of any retirement plan. In fact, it’s 3x higher than a traditional 401k and over 10x higher than a […]
OVERVIEW A solo 401k plan requires that you must not have any employees, including part-time employees who are at least 21 years of age, and have worked over 500 hours per year for 3 consecutive 12-month periods. There is only one exception to this rule, your spouse. Having your spouse work in your business makes them eligible to be […]