Retirement Savings Accounts: Solo 401k
There’s a lot of good to be said for being self-employed. The ability to make your own money off your own blood, sweat and tears in America is priceless. However, there are work related benefits the self-employed miss out on. The list of these terrific benefits includes employer sponsored-paid benefit plans like vacation pay and retirement investment opportunities.
With that said, there is in fact a 401K option specifically designed as a retirement savings option for small business owners. It’s not something that’s universally known but after the following discussion, readers should have a clear idea of how this government sponsored retirement savings option works.
What is a Solo 401k?
As indicated above, a Solo 401k account is a retirement investment account designed for small business owners who have exactly zero employees. There’s is one exception to the no employee rule – a spouse can be employed and participate in the Solo 401(k) program.
In most aspects, this type of investment account functions in much the same way as a traditional 401(k) account. All contributions are made with pre-tax dollars.
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