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A few weeks ago I received an email from someone I affectionately call Blogger X.

In that email, Blogger X asked me for some ideas on how to reduce his taxable income. I decided to write a post addressing some of his concerns and in that post I listed 3 different retirement plans that allow for self employed individuals to shelter gobs of income:

• The Pros and Cons of a SEP IRA
• The Pros and Cons of a SIMPLE IRA
• The Benefits of Owning a Solo 401(k)

Now, the reason I bring all this up is because earlier this week I received a very thorough email (below) from a conscientious reader, and in that email (as you will see) he references the above articles. So, I just want anyone coming across this post to be up to speed;) My answers to his questions are highlighted in blue.

Without further ado…

Continue Reading “A Reader Question Regarding Self Employment Retirement Plans”

If you’re self employed and feeling kind of down because you think your retirement options are limited to a SEP or a SIMPLE IRA… I’ve got good news for you… you can create your very own Solo 401(k)!

Similar in every way to it’s larger, more complicated, weighed down, traditional corporate 401(k) cousin, minus all the administrative headaches.

How does that sound? Hopefully, pretty good!

The 1 person 401(k) goes by a few different names, but is most commonly referred to as the Solo 401(k) or individual 401(k). Although the plan is designed for the individual business owner (or self employed), it is technically available to the spouse of the owner and any shareholder or partner in the business, as well.

A Solo 401(k) is simple and straight forward

Setting up a Solo 401(k) makes a lot of sense for sole proprietors, owners of an S Corp, C Corp or partnership. It would not make sense if you had employees or were thinking of hiring any employees in the near future. It’s specifically designed for you (and your spouse or partner) ONLY!

Continue Reading “The Benefits of Owning a Solo 401(k)”