401k For The Self Employed

You Don't Have To Work For Others To Have A 401k Plan

If you're new to entrepreneurship, or even a veteran (seasoned) business owner, you may not realize that you can start an IRS qualified retirement plan for your business. The best thing about a solo 401k is that if you're leaving your old an employer, you can transfer your current 401k plan to your own company's 401k! Transferring your 401k to a traditional solo 401k will help you avoid LOSING YOUR INVESTMENT TO TAXES & PENALTIES! Don't want to leave your employer? No problem! You can still have a traditional or roth 401k plan with your own company, as long as you don't defer more than the IRS yearly contribution limit. 

WHAT DOES IT DO? A traditional solo 401k allows you to exclude income from currents years’ taxes, and defer the income for taxation at a later time. Build your retirement income, and maintain emergency access of up to 50% of the funds’ assets through loans.

WHAT WILL IT SAVE ME? With the traditional solo 401k, you will be able to defer up to $56,000 of taxable income in 2019, and $57,000 in 2020.

WHAT CAN I INVEST IN? If you choose the traditional 401k plan, you will be able to invest in securities such as stocks, bonds, ETFs, commodities, and more. Should you choose a self directed Solo 401k, you can invest in things such as real estate, businesses, antiques, and more. 

WHAT IF I HAVE OTHER RETIREMENT PLANS?  Any contributions you make to other types of retirement accounts, such as IRAs, do not affect your 401(k) contribution limit. 

WHY DO I NEED IT? Retirement plans are an important element of a tax reduction plan. While an IRA is a good plan, if you need to access your money, you will have to pay a penalty. Those that can, should have a mix of 401k and traditional and Roth IRA’s.



Solo 401k Contribution Calculator: What is the maximum amount you can contribute?

Solo 401k Contribution Calculator allows you to calculate the maximum amount you can contribute to your plan. Click on the link below, enter requested info below and click the “Submit” button to see your results. A PDF document will be generated with the option for you to save or print it.  It is very important that you select the correct business type; please note that Sole-Proprietor is selected by default (if your business is a single member LLC, select the Sole-Proprietor type).  


The most convenient calculator is offered by 401K Help Center:

For an alternative calculator click HERE.

Is A Solo 401K For You?