Posted on 02 November 2009
A retirement plan for business owners who do not employ any staff is referred to as a solo 401K. In order to be eligible for the Solo 401K plan, you must be the sole owner of the business, although there is a possibility that a spouse can also be included in the plan. It is also necessary that you must also not be expecting to employ any other staff in your business in the future.

How much contribution you can make to the plan a year?
You are allowed to contribute up to 40,000 US dollars (USD) a year to the Solo 401K plan. If you are aged 50 or over, then it is allowed that you can make a 2,000 USD catch-up contribution. No further contributions are permitted except for the 2,000 USD catch-up allowances, once you have reached your 40,000 USD yearly contributions.
Benefits to the Solo 401K retirement plan
You can have many benefits from the Solo 401K retirement plan. You might be eligible to take out a loan. If already you have 100,000 USD in the plan, then you are able to apply for a 50,000 USD loan.
You are also allowed to deduct your Solo 401K contributions from your taxes, and then the Solo 401K investment will build on a tax-deferrable basis. The tax savings when using a Solo 401K are very substantial indeed, depending on your yearly income.

Trustee is required for a Solo 401K plan
In implementing a Solo 401K plan there is a great deal of responsibility. A trustee must be designated for holding the assets for you. You can also act as your own trustee, but if you want to do this then it requires a lot of careful planning. A detailed plan must be put into place, having certain rules and guidelines set out stating how the plan will operate. There are standard plan documents that are available for you, and you can take into account the cost of these when setting up your plan.
It is a new and less common retirement plan
The Solo 401K is a relatively new and less common retirement plan, and so it is not commonly offered by many financial establishments. At the moment the best research for the Solo 401K plan can be conducted through internet. In this way, you should be able to find those businesses that are offering this type of plan.
Fees charge by financial businesses
For setting up the account a one-time fee is charged by most of the financial businesses that offer this service. There will more than likely also be an annual maintenance fee, but that depends on the variety of service that you wish your provider to perform. If you can perform some of the services yourself, such as accounts and bookkeeping, then your annual charge could be considerably lower. As with all financial investments, you need to make sure you gain business quotes from a few advisors before investing any of your money.
Related Articles
- Understanding Monthly Payment Reduction & Debt Consolidation
If you are having outstanding debts that you cannot pay off by yourself due to financial instability then you can think about various options. These options include debt settlement plans, debt consolidation loans, credit card balance transfer options and ... - How to Get Lower Interest Debt Consolidation Program?
If you are looking for a lower interest debt consolidation program then you can easily find it by a number of ways. However, it is very important to you to carry out proper research about the available options and to find out where you can get lower inter... - Annuity and its Types
A distribution of money that is earned on an investment on a set schedule such as quarterly, biannually, or annually is known as an annuity. Typically, an annuity is used as part of a retirement plan. Once the annuitant, or recipient, stops working, an a... - Debt Consolidation Connection – Get rid of all your debts
Debt Consolidation Connection is a highly rated debt relief company in America. They have made a name in the industry due to their great customer services and fast debt relief measures. They promise to make their customers debt free in 12 to 36 months dep... - Bust all your debt with DebtBusters
DebtBusters is a professional and well established company having a history of 20 years behind them. They have resolved over 200 million of debt for their customers. They have a really good staff and one of the best, customer services in the field....
Categorized | Loans
Tags: bookkeeping, careful planning, catch-up contribution, financial businesses, financial establishments, financial investments, Internet search, loan, one-time fee, retirement plan, Retirement plans, rules and guidelines, solo 401K, tax savings, tax-deferrable basis, yearly contributions
This post was written by:
R. MAK. - who has written 452 posts on Fair Loan Rate!.
He is an IT Consultant turned Blogger, Interested in Technology, Personal Finance, Humans and Life...
Contact the author
Popular Tags
- people in need of urgent loan 2011
- I NEED A LOAN AMOUNT 40000USD
- 401k plan
- solo 401k bank of america
- I NEED A LOAN AMOUNT 40000USD
- I NEED A LOAN AMOUNT 50000USD
- people in need of loan 2011 -scam
- In need an urgent loan of 50000usd
- PEOPLE NEED A URGENT LOAN IN ICELAND 40000
- people who need loan now
- (banks where you can open a solo 401k)
- retirement plan on 100 000 usd
- solo 401k scam?
- solo 401k scams
- solo401k blogs
- i need ugent loan in all the state in usa
- i need email address of people who need an urgent loan of 100 000usd in USA in 2011
- 401k distribution
- 401K transfer spouse -ira -employer -divorce
- email of people in need of loan in usa 2011
- how to open a bank account for 401k
- I NEED A LOAN AMOUNT 50000USD
- i need a loan in uk 2011
- i need a loan of 100 000 usd
- i need a loan of 50000 usd 2011
- i need an ugent loan of 50 000sud in uk 2011
- i need an urgent loan in usa 2011
- wish to paost an annoucement for people in need of urgent loan 2011
Attn,..Emergency
This is to notify you that Mr mikco scot i currently giving out
loan to people in need of loan.I offer loan to people at a low interest
rate so as to enable the poor get a loan from my company.Any one in need
of loan now can simply contact us Via E-mikcoloanfirm@sify.com for more informations. E-mail me your
Name,…Phone Number,…..Loan Duration,….. Amount Needed,…..
Country,…. State