Benefits of a 401k Solo Plan

Investing in a 401k solo plan can provide you with a number of unique benefits as an individual who is saving for retirement. With this type of retirement plan, you can make larger contributions than you could with many other retirement plan options. For example, as an individual, you can contribute as much as $49,000 per year. If you are over the age of 50, you could contribute as much as $54,500. If your spouse is involved with your business, you can make the same contribution for them.

Loans

Another benefit of the 401k solo plan is that you can take out loans against the balance of your account. With other retirement account options, you will not be able to touch the money unless you want to take an early withdrawal. If you withdraw the money early, you will be penalized with a 10 percent penalty on the amount withdrawn. You will also have to count the money as regular income.

On the other hand, a solo plan allows you to not have to count the money as income and you can repay it with flexible terms.

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