Archive for the ‘Solo 401K Contributions’ Category

Here’s What You Need to Know About Contributing to a Solo 401(k) in 2018

May 21st, 2018

Under the 2018 Solo 401(k) contribution rules, a plan participant under the age of 50 can make a maximum annual employee deferral contribution in the amount of $18,500. That amount can be made in pre-tax, after-tax or Roth. On the profit sharing side, the business can make a 25% (20% in the case of a […]

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What is the Solo 401(k) Solution?

May 3rd, 2018

The Solo 401(k) Plan, also known as the Individual 401(k) or Self-Directed 401(k) Plan, is an IRS approved type of qualified retirement plan which is suited for business owners who do not have any employees, other than themselves and perhaps their spouse. The Solo 401(k) plan is not a new type of plan. It is […]

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Who Benefits the Most From Using a Solo 401k Plan?

April 12th, 2018

Any sole proprietor or small business owner that wishes to make high annual tax-deferred or Roth contributions, as well as have the ability to borrow up to $50,000 from the plan tax-free. Under the 2018 Solo 401(k) contribution rules, a plan participant under the age of 50 can make a maximum annual employee deferral contribution in the […]

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5 Reasons Why Every Self-Employed Individual Should Establish a Solo 401(k) Plan

April 9th, 2018

A Solo 401(k) plan is not a new type of retirement plan. It is a traditional 401(k) plan covering only one employee. In general, in order to be eligible to establish a solo 401(K) plan, one must be self-employed or have a small business with no full-time employees (over 1000 hours during the year) other […]

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Funding an Individual 401k Plan With a Rollover

March 6th, 2018

An individual who adopts an Individual 401(k), more frequently known as a Solo 401(k) Plan, may generally fund the Solo 401(k) Plan using two methods – the rollover process or by direct contribution. Most Solo 401(k) Plan documents will allow for the rollover of IRA or other pre-tax employer retirement funds, such as a 401(k), […]

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Quick Recap of the 2018 Solo 401(k) Contribution Limits

January 6th, 2018

A Solo 401(k) participant can contribute to the plan as an employee and as employer. Employee Elective Deferrals For 2018, up to $18,500 per year can be contributed by the participant through employee elective deferrals. An additional $6,000 can be contributed for persons over age 50. These contributions can be up to 100% of the […]

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2017 Deadline for Making Individual 401(k) Contributions

December 26th, 2017

The deadline for making Solo 401K Plan contributions is typically dependent on the type of entity that has adopted the Solo 401K Plan as well as the type of contribution – employee deferral vs. profit sharing contribution. Sole Proprietorship Employee Deferral In the case of a sole proprietorship, a business owner under the age of […]

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Can You Make Contributions to Both a Solo 401k and SEP IRA?

December 4th, 2017

Yes. You can make contributions to both a SEP and a Solo 401K Plan. In other words, a business can have both a SEP IRA and a Solo 401(K) Plan, although, there is generally no advantage for a business to have both active at the same time. A Solo 401(k) Plan includes both an employee […]

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