When you are self-employed you have several options in tax sheltered retirement plans. Here are 3 key benefits of using a SOLO 401K, also known as an Individual 401K:
- You can defer income at a much larger percentage of your income than through a Traditional IRA.
- As a 401K you have the ability to allow for loans on the plan that give you access to up to 50% of your account value up to $50,000, whichever is less.
- Unlike a SEP IRA an Individual 401K allows for you to fund your account using not only a traditional option, but also a ROTH option.
Consult a qualified adviser to discuss your specific circumstances. Not all qualified plans have the same provisions and an individual analysis is necessary.
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Always remember that while this is an investor education piece, this does not trigger or relate to trading activity on your account with Financial Future Services. This article is for informational purposes only and not intended as a recommendation. Each investors circumstances are different and a full review of you situation is necessary for a recommendation.
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