What is a Solo 401(k)?
A Solo 401(k), also known as an Individual 401(k), is a powerful retirement plan designed for self-employed individuals and small business owners with no full-time employees other than a spouse. It offers high contribution limits, flexible investment options, and unique features not found in traditional retirement accounts.
Key Features:
- Maximized Contributions: Make both employee and employer contributions, allowing for higher annual savings—up to $58,000 (or $64,500 if age 50+) as of 2021.
- Roth Option: Choose between pre-tax (traditional) and after-tax (Roth) contributions for tax flexibility now and in retirement.
- Plan Loans: Borrow from your Solo 401(k) for major expenses, with flexible repayment options.
- Diverse Investments: Invest in a wide range of assets—including real estate, private equity, precious metals, and more—with Imagine IRA’s platform.
- Spouse Participation: If your spouse earns income from your business, they can also participate and double your household’s savings potential.
- Easy Administration: Simple setup and management, with support for compliance and reporting.
Who Should Consider a Solo 401(k)?
- Self-employed professionals, freelancers, and small business owners with no full-time employees (other than a spouse).
- Those seeking to maximize retirement contributions and tax advantages.
- Investors looking for broad investment choices and the ability to borrow from their plan.
