E232: Solo 401(k) Contributions – EmployEE vs EmployER
August 9, 2024
What makes the Solo 401(k) particularly attractive is its unique dual contribution structure. Unlike traditional employer-sponsored 401(k) plans, a Solo 401(k) allows you to contribute to your retirement savings in two capacities: as an employee and as an employer. This dual role can significantly boost your ability to save for retirement, potentially allowing you to contribute more than you could with other self-employed retirement plans like SEP IRAs or SIMPLE IRAs.
Solo 401(k) Contributions – EmployEE vs EmployER
[Prefer to read? You can find an article version of this episode here: Solo 401(k) Contributions – EmployEE vs EmployER]
What makes the Solo 401(k) particularly attractive is its unique dual contribution structure. Unlike traditional employer-sponsored 401(k) plans, a Solo 401(k) allows you to contribute to your retirement savings in two capacities: as an employee and as an employer. This dual role can significantly boost your ability to save for retirement, potentially allowing you to contribute more than you could with other self-employed retirement plans like SEP IRAs or SIMPLE IRAs.
Intro/outtro music credit: eccentric - I Can Show You [Argofox Release] by Argofox