The best 401k retirement plan for small business owners gives you ample investment opportunities for financial growth and stability. You need not wait for your retirement to establish the qualified 401 k retirement plan. It is where you can put your hard-earned money into and see it grow and multiply in an exponential degree. The first thing you need to do is find the Individual k retirement plan provider and get eligible to start an account.
Why it is the best 401k retirement plan for small business owners?
Small business owners that have no fulltime employees in their payroll are the first to qualify for the Solo 401 k. There is, however, an exemption to the rule since the business owner’s spouse and the plan participant are allowed as fulltime workers for their business or company. The best 401k retirement plan for small business owners allows profit sharing contribution which is 20% to 25% of the total compensation. Businesses that are allowed to make contribution are single-member LLC or sole proprietorship types of business as well as partnerships, corporations or multi-member LLCs.
How much can you contribute?
According to the online 401 k contribution calculator, if the plan participant chooses to make salary deferral and profit sharing elective, plan owners can contribute up $53,000. However, if the plan holder is 50 years old or older, he can have an additional $6,000 catch-up contribution, making his annual contribution limit up to $59,000. Moreover, if the plan owner’s spouse chooses to make the same contribution to the same account, their combined contribution is up to $118,000. This is the best 401k retirement plan for small business owners giving them more ways to invest using their huge retirement savings. Another contribution option is salary deferral which is up to $18,000 for combined maximum contribution limits.
Earning without Tax Obligations
The best 401k retirement plan for small business owners also ensures tax benefits especially if plan participants roll over the Solo 401 k plan to the Roth 401k sub account. Plan participants make an after-tax contribution which exempts them from any taxes when they earn using their retirement funds for investment or withdraw their retirement money.
It is quite daunting to find financial ways and means to earn and put your money in lucrative investments. However, the best 401k retirement plan for small business owners enables plan participants to explore wealth-building opportunities for money-making and financial growth.
. individual k retirement plan
. online 401 k contribution calculator
. roll over the Solo 401 k plan
. qualified 401 k