Last Updated on January 30, 2020
Anyone who earns some form of self-employment income can establish a Solo 401(k) Plan. In other words, even if you have a regular 9-5 job, but do freelance graphic designing on the weekends, you can establish the plan. There are only two eligibility requirements, which are:
- You must be self-employed
- You cannot have full-time employees in your small business (excluding yourself, business partner and spouse)
Recently, we were inspired by a Forbes article written by our very own Adam Bergman, leading voice in the self-directed retirement industry and President of IRA Financial. In his article, he explained why the Solo 401(k) should inspire everyone to join the gig economy. But what if you don’t have skills to be a freelance graphic designer, photographer or writer? What side hustle can you do?
Before we get into 7 side gigs anyone can do, let us briefly explain why you want to establish a Solo 401(k) plan to begin with.
Why the Solo 401(k)
A Solo 401(k) allows you to use your retirement funds to make alternative asset investments. We aren’t talking about stocks, bonds, mutual funds, etc. Instead, you can purchase real estate, cryptocurrency, precious metals and more.
Traditional Stock Investing
The nearly unlimited options of self-directed retirement plans provides the flexibility to make traditional investments, too.
Maximum Contribution Limits
There are two types of contributions you can make with the Solo 401(k). As a result, you make the highest contributions to it than any other plan. The maximum contribution you can contribute if you are 50 and under is $56,000. If you are older than 50, you can make contributions up to $62,000.
You cannot and should not borrow from most retirement plans, but the Solo 401(k) makes this possible and simple. Individuals who establish the plan can borrow $50,000 or 50% of the account value, and the interest rate to pay the loan off is lower than when applying for a personal loan. You can use the loan whenever, and for any purpose.
You don’t have to worry about filing any forms until your account exceeds $250,000, in which case, you have to file a very simple form called 5500-EZ. It will only take minutes to complete.
7 Side Gigs Anyone Can Do
If you dream of early retirement, then the Solo 401(k) will help you achieve your retirement goal faster. However, if you do not have dreams of starting your own business, here are 7 side gigs anyone can do.
1. Lyft/Uber Driver
Ridesharing is a great side gig anyone can do, even if you have a full-time 9-5 position. To be an Uber or Lyft driver, your car must pass a 19-point inspection, which can be done at your local mechanic. Other car requirements include in-state plates and a current registration. Driver requirements include an age of 21 or older and a clean driving record. Requirements differ for each company, so you will need to visit the company’s websites to review their specific requirements.
3. Rent out Your Car with Turo
You can earn a little side money by renting out your car to perfect strangers. Find a reputable company to go through, such as Turo, the “Airbnb of cars.” Travelers who do not want to deal with the high prices of most car rentals will book your vehicle on Turo for a period of time. You can choose who you wish to rent out to, and if the car is stolen, it will be covered with up to $1 million in liability insurance! Additionally, Turo provides contractual protection for damage and theft. Pricing is determined on your vehicle’s year, make and model.
2. Online Tutoring
If you are proficient in a field, like math or Spanish, you can teach students from the comforts of your home. If you don’t think you have the aptitude to teach a subject like math, no problem. If you’re fluent in English, you can teach basic English to foreign students. Many online tutoring companies require that you have a TEFL certification and a bachelor’s degree, but the job pays well and the work is rewarding.
4. Mystery Shopper
If you love to shop, why not make some money out of it? A Bona Fide side gig anyone can do, mystery shoppers shop at the company employing them and provides unbiased customer reviews on their experience.
5. Voice Over Artist
Do you have a voice that’s made for the radio?
There are all sorts of clients who need all types of voicesfor advertising purposes. Whether your voice sounds deep, high-pitched or you have a broad American or posh English accent, your particular voice could be very much in demand. To start with, make a recording of your voice using your computer or phone, upload it to your profile on Fiverr and advertise yourself as a voice over artist.
6. Human Billboard
Here’s a unique job that requires very little work, and perhaps the skillset you need is good penmanship. All you have to do is write your client’s logo on yourself as a form of guerilla marketing. Take a picture and send it off to the client. You can find this type of side gig on online marketplaces, such as Fiverr.
If you are bilingual, find a company that’s in need of a translator or interpreter. You can find freelance gigs at online sites like Fiverr and Freelancer.
If You Quit Your Side Gig
The good news is, you do not need to be the owner of a small business to establish the Solo 401(k) plan. Any type of self-employment income will do the trick. However, if you no longer generate self-employment income, the plan must be terminated. The process is simple, and if you established your Solo 401(k) with IRA Financial, our team will provide assistance.
From there, you simply need to transfer or rollover the funds from your Solo 401(k) into another retirement plan. If you enjoyed the benefits of self-directing, establish the Self-Directed IRA and continue to invest in alternative assets and remain in control of your retirement funds.
If you want to join the gig economy and adopt the Solo 401(k), these are side gigs anyone can do and will ensure you meet the Solo 401(k) eligibility requirements.