Contribute $55,000 to a Solo 401k in 2018
Updated: Dec 18, 2018
Imagine this. A 401k that has sky high contribution limits AND open architecture where you're not limited to a menu of high cost mutual funds and you have thousands of investment choices. Enter the Solo 401k.
In a Solo 401k, the business owner gets to contribute as the employee AND the employer. It's a pretty awesome deal. The benefit is two-fold: first, it maximizes retirement contributions and second, there are BIG tax advantages and business deductions.
Here's how it works
Self-employed individuals without employees can open a Solo 401k. Spouses and business partners can contribute as well.
Contribute as both the employer and the employee for incredible tax-deferred growth and tax deductions. The contributions limits for 2018 are:
Employee contribution: $18,500 + $6,000 if over 50.
Employer contribution: 25% of compensation
Maximum contribution limit of $55,000 + $6,000 if over 50.
Account must be opened by December 31.
Minimal record-keeping requirements, which keep the costs of this type of retirement plan near 0.
To get started now, call us and talk directly with a retirement plan specialist at 360.778.2340.
Read more in this Solo 401k Guide provided by TD Ameritrade.
You can also check the IRS website here for additional info.
And finally, if it's just way easier, email us at email@example.com and we'll get back to you asap.