What is a Solo 401k Plan?

401k plans only are retirement plans that provide for discretionary contributions from employees and employers. These Plans evolved in 2001 from the Economic Growth and Tax Relief Reconciliation Act (EGTRRA).
The changes gave small businesses the opportunity to enjoy the benefits of making income deferrals to 401k plans in addition to spending contributions without exceeding the tax-deductible limits that previously accompanied regular 401k plans. Some estimate that 19 million people can take advantage of these plans.

Who can have a Solo 401k Plan?

You can if you are self-employed and have no common law employees. Eligible self-employed workers include sole proprietors, partnerships, S-Corps, C-Corps, LLCs, and small family businesses. You can also have a Solo 401k plan if you have a part-time job in addition to your full-time position. You may not have any regular full-time employees other than your spouse and, in certain cases, your children. However, if your plan is set up correctly, you can have part-time or casual employees as long as they don’t work more than 1,000 hours in a twelve-month period.

Why should I have a Solo 401k Plan?

A 401k only plan offers multiple opportunities including:
1. You can tax defer up to $17,500 a year as employee contributions

2. You can deduct up to 25% of your compensation (net income) up to $52,000 as employer contribution.

3. You can deduct an additional $5,500 above the $52,000 limit if you’re age 50 or older.

4. You can have a tax-free retirement with Roth Solo 401k contributions.

5. Your Solo 401k account is protected from creditors in the event of bankruptcy.

6. You can consolidate your traditional IRA, 403(b), or corporate 401k as rollovers into a 401k Only. However, Roth IRAs cannot be transferred to Solo 401k.

7. You can borrow up to 50% of your total Solo 401k account balance up to $50,000.

where you can invest

Solo 401k plans have multiple investment options. Some of the investment opportunities include:

A. Stocks, Bonds, Mutual Funds
B. Real Estate
C. Private locations
D. Other corporations such as LLCs
E. Oil and Gas Royalty Interest
F. Stock Options
G. Mortgages and investment loans
H. Gold and silver coins
I. Life Insurance and Annuities

When should a plan be set up?

A Solo 401k Plan must be started at the beginning of the year to use your earnings as the basis for your contributions. However, you can start a plan until December 31 and still benefit from your taxes. You just can’t wait until the day before you file your taxes. When you’re ready, go to Just 401k to get started. If you want to find out more, go to: IRS Reference for Solo 401k Plans and Wikipedia Reference for Solo 401k Plans.

The reasons to start a Solo 401k Plan

..Because he wants to self-direct the operations of the plan.
…Because you want Checkbook Control over your Investments.
… Because you want to trust yourself in your asset decisions.
..Because you do want to safeguard your assets.

Where to Get the Best Self Directed Checkbook Control Plan Solo 401k
Go to the Solo-k retirement group: – the Solo 401k authority