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Solo 401k Magic

If you plan to tour the wine country near San Francisco on a vacation from Houston, but are afraid to fly or travel by train, then your best options are to drive or run.
Although I have been a runner of 42 years, but I am not Forest Gump, I am not running 2,000 miles to drink wine (although I do love wine).
If you read “The IPO Guru “ page of my website, then you know my method of looking for and finding the Magic in investment solutions designed for my clients to meet their needs and goals.
I have discovered what I call the “Solo 401k Magic” that I would like to share with you. It is another tax deferred retirement solution that can cast a positive spell over your retirement if you are self employed.
Employed individuals have the opportunity to contribute to individual IRAs, SEPs, Simples and 401ks if your employer offers a 401k program.

If you are self employed, the IRS has made it possible for you to have a Solo 401k and avoid the form 5500 annual filing requirement. If you are self employed, the IRS has made it possible for you to have a Solo 401k and avoid the form 5500 annual filing requirement. Here are the advantages and requirements of Solo 401k Magic that I pursue for my clients who qualify:

  1. You must be self employed and can have no other employees except your spouse who is employed by your company.
  2. $58,000 is the maximum you can contribute for 2021 if your income level is that amount or greater. That is huge compared to other retirement plan annual contribution limits.
  3. Your contribution amount reduces income subject to federal income tax for that year.
  4. You have the option of a Roth bucket inside your plan.
  5. In my Solo 401k Magic plan, you can choose from over 5,000 investment options unlike regular 401k corporate plans which typically include only 12 to 25 mutual fund investment options.
  6. My plan includes mutual funds, but also common stock, preferred stock, ETFs, IPOs, US treasuries, corporate bonds, REITS and more.
  7. You can tailor your plan to allow for asset balance loans and hardship distributions.
  8. The deadline for opening a Solo 401k plan is October 1 of each year, unless you become self employed after October.If you are self employed, let’s meet to tailor a Solo 401k Magic plan just for you.

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