Best Solo 401k Plan: Setup Expenses
While looking for the best Solo 401k plan, many business owners have questions regarding the setup expenses. How much would it cost to set up a Solo 401k plan? Who is responsible for this cost? Can the small business owner use their 401k money to pay for the setup expenses?
In this Solo 401k Quick Tip video, we will look for answers to these questions. The Solo 401k plan for small business is a very cost-efficient retirement plan. Understand the setup cost and fee is the first step in order to take action to protect your future.
The Expenses to Setup the Best Solo 401k Plan for Small Businesses:
The establishment cost is the responsibility of the plan sponsor or the employer. In the case of a Solo401k, you are the employer in the business. Therefore, you are responsible for the Solo401k establishment cost. It should be paid for from your personal or business account. You cannot use your retirement funds to pay for the establishment cost. Typically this can be a deductible business expense. Check with your accountant to see if it can be claimed as a deduction for your business.