Solo 401(k) plans are self-directed retirement plans designed for small-business owners who have no full-time employees (other than self or spouse). These plans may be self-administered by the business owner, making him or her the “trustee” and thereby eliminating the need to engage a third party to handle administration or investments.
A solo 401(k) plan is a great investment tool that provides a wide range of investment choices, as well as checkbook control, which means you have the decision making power regarding how your funds are invested. These plans also offer other excellent retirement savings features such as high contribution limits, a Roth savings component, and the ability to personally borrow from your plan. The Solo 401k is the best option if you are self-employed and would like to maximize contributions to your retirement plan or take advantage of the loan provision.
Learn more about the power and flexibility provided by the Solo 401(k) plans in this section of our blog, with useful articles to help you make the best decisions for your retirement funds and your financial future.
IRS rules stipulate that certain investors are required to take distributions from IRA and 401(k) plans. The mandatory withdrawals are referred to as Required Minimum Distributions (RMDs). The SECURE Act of December 2019 and the CARES Act of March 2020…
2020 may be an opportune time for many investors to consider a Roth conversion. In our first article of this series we discussed how a dip in income, and a corresponding dip in tax rate can reduce the tax cost…
The benefit of owning a self-directed Solo 401(k) is to leverage the tax-sheltered savings structure of the plan to create wealth for our golden years. When those retirement years arrive, we have the opportunity to draw down some of that…
If you’ve been studying self-directed retirement plans, you’ve likely stumbled on the fact that a Solo 401(k) plan is widely considered to be the best available program. With a self-directed Solo 401(k), you have the best of both worlds in…
NOTE: Passage of the SECURE Act in 2019 renders this strategy obsolete. With the new law, one can establish a Solo 401(k) up until the date of the tax-filing deadline of the sponsoring employer, including extensions. This plan can then…
More and more Americans are forgoing the morning commute to the office in exchange for a freelancing career. Over 36% of Americans are freelancers, and that number is estimated to rise to over 50% in 10 years if the growth of gig workers across…
If you qualify as a self-employed entrepreneur and your business has no full-time employees, the Solo 401(k) is a fantastic self-directed retirement plan option. A Solo 401(k) isn’t really a distinct type of retirement plan. It’s a specific implementation of a…
![Solo 401(k) Checkup [CHECKLIST]](https://ira123.com/wp-content/uploads/2017/11/calculator-calculation-insurance-finance-53621.jpeg)
Periodically checking up on your Solo 401(k) plan will help ensure that everything is in order. The 5 following items are designed to keep you on track and organized with your retirement plan on an annual basis. Business / Plan…
![Which Self-Directed Retirement Plan Is Best For Me? Part II [CHECKLIST]](https://ira123.com/wp-content/uploads/2013/02/sign.png)
*This blog post is the second and final article in our two part series. You can read the first article here. Our first article of the series “Which Self-Directed Retirement Plan is Best for Me” addressed overviews of two plans,…
A 2012 report by McKinsey and Co. found a 14% increase in alternative investments, from $2.9 trillion in total funds invested, to $6.5 trillion in 2011. Alternative investments include self-directed IRAs, in which account holders can invest in a broad…
