What is a Solo 401k plan?

401k solo shooting They are retirement plans that provide for discretionary contributions from employees and employers. These plans evolved in 2001 from the Economic Growth and Tax Relief Reconciliation Act (EGTRRA).
The changes gave small businesses the opportunity to enjoy the benefits of income deferral to 401k plans in addition to using contributions without exceeding the tax deductible limits that previously accompanied regular 401k plans. Some estimate that 19 million people could benefit from these plans.

Who can have a Solo 401k plan?

You can do this if you are self-employed without common law employees. Eligible freelancers include sole proprietorships, partnerships, S-Corps, C-Corps, LLC, and small family businesses. You can also have a Solo 401k plan if you have a part-time job in addition to your full-time position. You cannot have any permanent full-time employees other than your spouse and, in certain cases, your children. However, if your plan is set up correctly, you can have occasional or part-time employees as long as they don’t work more than 1000 hours in a twelve-month period.

Why should I have a Solo 401k plan?

A Solo 401k plan offers multiple opportunities including:
1. You can defer taxes of up to $ 17,500 per year as employee contributions.

2. You can deduct up to 25% of your compensation (net income) up to $ 52,000 as an employer contribution.

3. You can deduct an additional $ 5,500 over the $ 52,000 limit if you are age 50 or older.

4. You can have a tax-free retirement with Roth Solo 401k contributions.

5. Your Solo 401k account is protected from bankrupt creditors.

6. You can consolidate your traditional IRA, 403 (b) or corporate 401k as transfers in the 401k Solo. However, Roth IRAs cannot be rolled over to Solo 401k.

7. You can borrow up to 50% of the total balance of your Solo 401k account up to $ 50,000.

Where can you invest?

Solo 401k plans have multiple investment options. Some of the investment opportunities include:

A. Stocks, bonds, mutual funds
B. Real estate
C. Private locations
D. Other corporations like LLC.
E. Interest on oil and gas royalties
F. Stock options
G. Mortgages and investment loans
H. Gold and silver coins
Life insurance and annuities

When do you need to set up a plan?

A Solo 401k Plan must be started at the beginning of the year to use your earnings as the basis for your contributions. However, you can start a plan until December 31 and still benefit from your taxes. You cannot wait until the day before you file your tax return. When you’re ready, go to Solo 401k to get started. For more research, visit: IRS Reference on Solo 401k Plans and Wikipedia Reference on Solo 401k Plans.

The reasons to start a Solo 401k plan

..Because you want to self-direct the operations of the plan.
… Because you want checkbook control over your investments.
… Because you want to self-define your asset decisions.
..Because you want to have custody of your assets.

Where to get the best self-directed checkbook control Solo 401k Plan
Go to the Solo-k retirement pool: – Solo 401k authority