Your 401k solo contribution limits will influence the amount of retirement funds you can access and use for your future investment. Not all Solo 401k plans are the same, and choosing the right provider can make a tremendous difference. The main reason why most clients prefer a company above others is usually that they offer more than just a retirement plan. A good plan provider offers venues for wealth building ventures where you can use your retirement money to invest on the best trades and industries which offer a profitable return.
401k Solo Contribution Limits for Small Business Owners
You can prepare for your retirement when you comply with the requirements and allocations of an individual 401k plan. Small business owners and self employed individuals are qualified for this type of financial retirement investment. You must be a small or sole proprietorship owner with only yourself and your spouse as your full time employees. You could not qualify for this pension plan if you have full time workers which according to IRS definition, work 1,000 hours or more per annum in a company. Should there be other part time employees in the company aside from your spouse, they would not be included in the policy.
A Solo 401k allows plan holders to contribute as much as $57,500 per year. To find out the contribution limit for your plan, use the contribution calculator here.
Benefits of Solo 401k
A lot of solo 401k participants see the enormous benefits of this pension plan hence they are not only delighted they invested but also proud of their decision. The outstanding features and benefits of this retirement plan are what made it unmatched when it comes to services and benefits. For individual k participants, using your retirement funds for large investments is as easy as signing a check. This is due to the Checkbook Control feature of the individual k plan. Those who want to use their retirement money could do so without the usual hassles found in most retirement policies. You could use your hard-earned money when you want to invest in real estate, buy a residential home or rental properties and even raw lands.
Complying with the highest 401k solo contribution limits will start up your lucrative investment ventures. You can certainly enjoy and reap the fruits of your hard work with the retirement funds when you retire. Use it for starting up a business, paying your bills or embarking on an investment with high ROI.