Are you self-employed or an independent contractor* looking to save for retirement beyond the low limits of your IRA?

When contributing to an IRA isn't enough and you can't participate in a workplace retirement plan, a solo 401(k) plan becomes an excellent retirement resource for you.

It's an easy way to ramp up your tax-advantaged retirement savings...as much as $61,000 per year (or more if you’re older than 50)!

  • significantly higher contributions limits than IRAs (as much as $61,000 compared to $6,000 in 2022, plus a $6,500 age 50 and older catch-up contribution compared to $1,000 for an IRA)

  • the ability to save on a tax-deferred (Traditional) AND tax-free growth (Roth) basis

  • the ability to still contribute to your IRA, and unlike with Roth IRAs, there are no income limits for Roth solo(k) contributions

  • the ability to contribute additional funds to your account (known as profit-sharing), which gives you double the tax benefits: 1) additional funds to grow on a tax-advantaged basis; and 2) you reduce your business’ taxable income because profit-sharing is a business expense

  • you can be a sole proprietor or structured as an LLC or corporation; all you need is an EIN (if you don't have one, you can instantly get one from the IRS).

  • the ability to take plan loans up to $50,000 (and loan interest is paid back to your account)

  • portability; a job change doesn't impact your plan

  • tax-free rollovers from old retirement plans into your solo(k) plan, so you benefit from consolidation and organization

  • additional creditor protection than with IRAs because solo(k) plans are afforded Qualified Retirement Plan status per ERISA, IRAs are not

  • as always, professional account management from the area's highest rated financial planning and investment management firm

*you can be a sole proprietor, an LLC or a corporation with no W-2 employees other than yourself and your spouse