What Exactly is a Solo 401k?
Most employed people have heard the term 401k before and are probably setup with one through their company. However, you may have heard the term "solo 401k" being tossed around but have no idea what that really is. If you're working for a corporation, it's actually not something to be very concerned about. A Solo 401k is a retirement plan, just like a normal 401k, but for people who work for themselves and have no full-time employees (also known as everyone's dream job to be your own boss!). Like all the other retirement plans, this one comes with rules and regulations too. Your spouse is actually allowed to contribute to the plan as well. You can put away more money with a Solo 401k than with a Simple IRA. You can contribute 100% of your first $16,500 in income from your business. If you're 50 or older, you can put in $22,000. You can also add an additional 20% of net profits until you reach the maximum of $49,000 ($54,500 if you are 50 or older). If you're interested in a Solo 401k, consider setting one up through Broad Financial. You will be in control of diversification options and all your investments. Plus, with a checking account, you can control your funds by simply writing a check. Visit Broad Financial's website to learn more about this great retirement plan.