Do you own a successful small business with no employees and want to set up a retirement plan? Or do you want to upgrade from a SIMPLE IRA or Simplified Employee Pension (SEP) plan? Consider a solo 401(k) if you have healthy self-employment income and want to contribute substantial amounts to a retirement nest egg. This strategy is geared toward self-employed individuals including sole proprietors, owners of single-member limited liability companies and other one-person businesses. Go it alone With a solo 401(k) plan, you can potentially make large annual deductible contributions to a retirement account. For 2022, you can make an “elective deferral contribution” of up to $20,500 of your net self-employment (SE) income to a solo 401(k). The elective deferral contribution limit increases to $27,000 if you’ll be...
