Ocho Solo 401k
A Supercharged Retirement Plan, Designed For Business Owners
The Ocho Solo 401k gives business owners the biggest tax advantages of any retirement plan. Contribute up to $66,000 and invest in any asset class with tax-free compounding. We meticulously crafted Ocho to be the simplest, easiest solo 401k experience you’ll ever have. Create your account, make contributions, and invest your funds all in one place through our minimal, intuitive dashboard.
Why You Need to use Ocho
An All-In-One Integrated Platform
Ocho is the easiest way to set up a solo 401k and start investing your money with tax-free compounding. You can open an account in under 10 minutes, and we take care of all paperwork and administration for you. No need to open separate bank and brokerage accounts – it can all be done through your Ocho account.
The Easiest Way To Invest In Alternative Assets
Invest in traditional assets like stocks, mutual funds, and ETFs, or take full checkbook control and directly invest your money in alternative assets like real estate, crypto, and private equity.
Pick and Choose Your Tax Savings Each Year
You get to decide whether you want to contribute with pre-tax dollars and get a tax deduction, or contribute into a Roth account for tax-free withdrawals in retirement. Deduct up to $66,000 from your taxable income, or put the whole amount into a Roth account. It’s entirely up to you.
The Biggest Roth Account Legally Possible
A mega backdoor Roth solo 401k lets you invest up to $66,000 entirely into a Roth account (10x more than a Roth IRA, and 3x more than what’s traditionally allowed with a 401k). A mega backdoor Roth is a complex procedure with many moving parts. With Ocho, it’s 100% handled for you.
A Delightfully Easy Investing Experience
Create your account, make direct contributions, rollover assets, and invest your funds all in one place. And if you need help, we’re here for full account administration assistance, automated tax filings, and security & compliance monitoring.
What entrepreneurs say about using Ocho
A Retirement Account Not Quite Like The Rest
Contribute up to $66,000 into an Ocho Solo 401k for 2023. That’s 10x more than an IRA, and 3x more than a normal 401k. Invest in any asset class (including crypto, NFTs, real estate, and startups) with tax-free compounding, and never pay any fees for your assets under management. Enjoy all the benefits of the Ocho Solo 401k for just one low yearly fee.
Highest Contribution Limits
The Ocho Solo 401k has the highest contribution limits of any retirement account ($61,000 for 2022 – $66,000 for 2023).
Total Investment Freedom
Invest in any asset class including stocks, ETFs, crypto, NFTs, real estate, or private equity.
Pay zero taxes on any income or profits generated from your investments. 100% of your profits go straight back into your account.
A Supersized Roth Account
With a Roth account, withdrawals in retirement are completely tax-free. Contribute up to $22,500 into an Ocho Roth Solo 401k for 2023.
Largest Tax Deductions
You can get a tax deduction of up to $66,000 for 2023 by making your entire contribution with pre-tax dollars.
Full checkbook control
Get full checkbook control over your funds. You can write checks directly on your own without having to go through a custodian.
Mega Backdoor Roth
Ocho has full support if you want to implement a mega backdoor Roth solo 401k, which allows you to put up to $66,000 into a Roth account for 2023.
Integrated Bank & Brokerage Accounts
No need to go out and open separate bank and brokerage accounts. Easily open any accounts you need within Ocho.
Fund your account by rolling over an unlimited amount of funds and assets from any other retirement plan that you already own (except a Roth IRA).
World Class Support
Rely on the Ocho team to help you with any questions, administration support, annual tax-filings, and compliance monitoring.
Ready to get started with the Ocho Solo 401K Plan?
It takes less than 10 minutes to open an account
Transparent pricing with no AUM fees
Unlike other money managers, we charge zero fees on your money under management (AUM) and do not receive any kickbacks from any products we recommend.
All income levels and all business entities eligible
Any business owner, freelancer, creator, or even full-time employees with a side hustle can open a solo 401k. The only requirement is that you have no full-time W-2 employees that work over 1,000 hours in your business (excluding your spouse). There are no income limits – you’re eligible whether you make over $1M or operate a small side hustle.
One plan that fits all your needs.
The Ocho Solo 401k Plan Comes With
- Ownership of an Ocho Solo 401k Plan.
- A Roth solo 401k account
- Security & compliance monitoring.
- Personalized investment plan & recommendations.
- Support for a mega backdoor Roth conversion.
- A simple all-in-one investment platform.
- Full onboarding support and account administration assistance.
- Integrated brokerage accounts.
- Rollover support from other retirement plans that you already own.
- Access to any investment options, with full checkbook control (coming soon).
To be eligible for a solo 401k, you need any sort of business or self-employment activity, with no full-time W-2 employees that work over 1,000 hours in your business (excluding your spouse). Business owners with any type of business entity can open a solo 401k, whether you operate as a sole proprietorship, partnership, LLC, s-corp, or c-corp. You can still work with freelancers and contractors, but you lose eligibility if you have full-time W-2 employees.
Ocho Investment Advisors LLC is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC), and uses bank-level security and state of the art encryption to keep your data and money safe. Brokerage and custody services are provided by DriveWealth LLC, a SEC registered broker-dealer and member FINRA/SIPC. DriveWealth also works with other well known fintech platforms, like Square Cash App and Revolut. SIPC, or the Securities Investor Protection Corporation, currently protects the securities and cash in your account up to $500,000 of which $250,000 may be in cash. SIPC does not protect against the market risks associated with investing.
Additionally, like all 401(k) plans, your Ocho Solo 401(k) is set up as a retirement trust, where you are appointed as the sole trustee and plan administrator. In the unlikely event that Ocho were to go out of business, your 401(k) and trust would remain in existence, and all funds would remain under your control. While Ocho helps set up your solo 401(k) plan, you remain the plan administrator and trustee at all times, and Ocho never has custody of your funds, meaning they are owned and titled by your 401(k) plan, not by Ocho. If Ocho were to close, you could choose to keep your money with DriveWealth, or transfer it to a new advisor or your bank account.
There are no additional fees, hidden charges, or fees on your assets under management (AUM). You get all the premium features of the Ocho Solo 401k for one all-inclusive price.
When you sign up for the Ocho Solo 401k, you’re given three different accounts: Traditional (pre-tax), Roth (post-tax), and an after-tax account.
Contributions made to your traditional (pre-tax) account are tax-deductible. If you’re looking for the largest tax deduction possible, you can make all your contributions as pre-tax for the year and deduct up to $61,000 ($67,500 if age 50+) for 2022 and $66,000 ($73,500 if age 50+) for 2023.
For comparison, contributions made to your Roth (post-tax) account are not tax-deductible but allow you to take tax-free withdrawals in retirement. The after-tax account is a special-use account that we have solely for executing the mega backdoor Roth solo 401k.
When you sell assets in your account for a profit, you don’t pay any capital gains taxes. Instead, 100% of your earnings go straight back into your solo 401k account where it can get reinvested.
For example, if you invest in a rental property through your solo 401k, all profits earned from rental income are tax-free – no capital gains taxes owed. If you decide to sell the property, all profits from the sale are also tax-free.
For 2022, you can contribute up to $20,500 into your Roth solo 401k. If you’re at least 50 years of age, you can contribute up to $27,000.
For 2023, you can contribute up to $22,500 into your Roth solo 401k. If you’re at least 50 years of age, you can contribute up to $30,000.
Ocho also supports the mega backdoor Roth solo 401k, which allows you to contribute more money into your Roth solo 401k than is typically allowed. If you perform a mega backdoor Roth solo 401k with Ocho, you can contribute up to $61,000 ($67,500 if age 50+) for 2022 and up to $66,000 ($73,500 if age 50+) for 2023. If this sounds confusing to you, don’t worry – we’ll help guide you through it.
The way a typical self-directed solo 401k plan works is: You sign up with a provider and they create the solo 401k plan docs for you. You then take those plan docs to a third party bank or brokerage and ask them to open accounts for your new solo 401k.
With Ocho, there’s no need to take your plan docs and go searching for a third party that will accept them. Because we have an integrated brokerage built in, your solo 401k brokerage accounts are automatically created for you when you sign up.
When you sign up for a solo 401k plan, you get a separate bank and brokerage account for your solo 401k trust. As the trustee of your plan, you get checkbook control over those accounts and can write checks and wire funds directly when you want to make an investment.
For example, if you want to buy crypto, you would open a new account with an exchange using your solo 401k plan trust as the owner, and fund your account using your solo 401k bank account. If you want to invest in a startup, you would simply write a check from your solo 401k plan trust bank account.
If you have any other questions that weren’t answered here, contact us anytime by clicking on the chat bubble icon at the bottom right corner of your screen.
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