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Solo 401k – A Qualified Retirement Plan for Individuals

The Solo 401k Retirement plan is one of the qualified retirement plans for individuals who are self-employed, contractors or a business owner with no employees. It allows businesses to make contributions to retirement accounts as it has an option of profit sharing contribution. This plan gives the same tax benefits as general 401k but without following ERISA act. It is the only plan in which both the employer and employee can get more benefits. To get more details about the solo 401k retirement plan, visit https://sproutira.com/

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Solo 401k – A Qualified Retirement Plan for Individuals

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  1. Solo 401k – A Qualified Retirement Plan for Individuals

  2. Content Introduction Solo 401k Retirement Plan Types of Solo 401k Plan Contribution Limits Contact Us

  3. Introduction A Solo 401k retirement plan is an individual retirement plan especially made for employees and business owners except for full-time workers. In this plan, both the employer and employee can make contributions. It is also known as Individual 401k, Uni k, One-participant k or Self-employed 401k plan.

  4. Solo 401k Retirement Plans People who earn money from self-employment activities and small business owners with no full-time workers can put their retirement funds in the Solo 401k plan. This plan follows the same rules and requirements as other 401k plans. The employer has an advantage of tax-deductible contributions and employee has pre-tax contributions benefit.

  5. Types of Solo 401k Plan Brokerage based and self-directed are the two types of Solo 401k plan. The self-directed solo 401k plan allows investing in vast options such as real estate, precious metals, private loans, crypto currencies and private business investments. The Brokerage based solo 401k plans has limited investment options such as stocks and mutual funds.

  6. Contribution Limits For an employer, the total contribution amount cannot exceed 56,000 dollars in 2019 and 62,000 dollars for people who are above 50. The employer also gets a 25 percent of compensation as mentioned in the plan. For an employee, the total contribution amount cannot exceed 19,000 dollars in 2019 and 25,000 dollars for people who are above 50.

  7. Contact Us To get more details about solo 401k retirement plan, visit Sprout IRA.

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