tag:blogger.com,1999:blog-10950300.post1960254202706729436..comments2023-10-11T08:53:14.017-04:00Comments on Entrepreneurial Engineering: Self-employed retirement planJack Krupanskyhttp://www.blogger.com/profile/17254264642831755180noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-10950300.post-31313482088793963492008-03-24T17:58:00.000-04:002008-03-24T17:58:00.000-04:00A solo 401(k) is a great idea. You have complete c...A solo 401(k) is a great idea. You have complete contribution flexibility deciding each year whether to contribute and, even better, how much to contribute.<BR/> <BR/><BR/>Those limits are high but the maximum total contribution allowed to an individual 401(k) this year is $40,000; $42,000 if you are 50 or older. Your tax-deferred contributions can be up to three times as much as what's allowed under some other types of retirement plans.<BR/> <BR/><BR/>And best of all, it is easy set-up and inexpensive to maintain but keep in mind, once your business expands - and isn't that the real reason we set out on our own, the switch might be more costly than you think. <BR/><BR/>So far, the Roth 401(k) is not available for solo savers.<BR/><BR/><BR/>There is also the consolidation convenience where you can consolidate assets from your traditional IRA or other retirement plans into your Self-Employed 401(k) .@PaulPetillohttps://www.blogger.com/profile/14377545844624900027noreply@blogger.comtag:blogger.com,1999:blog-10950300.post-83454834583291809722008-03-24T17:56:00.000-04:002008-03-24T17:56:00.000-04:00A solo 401(k) is a great idea. You have complete c...A solo 401(k) is a great idea. You have complete contribution flexibility deciding each year whether to contribute and, even better, how much to contribute.<BR/>bullet <BR/><BR/>Those limits are high but the maximum total contribution allowed to an individual 401(k) this year is $40,000; $42,000 if you are 50 or older. Your tax-deferred contributions can be up to three times as much as what's allowed under some other types of retirement plans.<BR/> <BR/><BR/>And best of all, it is easy set-up and inexpensive to maintain but keep in mind, once your business expands - and isn't that the real reason we set out on our own, the switch might be more costly than you think. <BR/><BR/>So far, the Roth 401(k) is not available for solo savers.<BR/>bullet <BR/><BR/>Consolidation convenience – You can consolidate assets from your traditional IRA or other retirement plans into your Self-Employed 401(k) .<BR/>bullet <BR/><BR/>Access to cash via the 401(k) loan option - You can get a loan of up to the lesser of $50,000 or one-half of your Self-Employed 401(k) account balance. The loan can be used for any purpose and the loan is tax free and penalty free as long as it is paid back on time.@PaulPetillohttps://www.blogger.com/profile/14377545844624900027noreply@blogger.com