The Solo 401k plan comes with a Roth account, which allows after-tax contributions. Watch this Solo 401k Quick Tip video to learn more about the Roth Solo 401k and the benefits it offers.
Roth Solo 401k Benefits
A Roth Solo 401k offers similar benefits to a Solo 401k, including loan option and flexible investment options. The difference is that, with a Roth Solo 401k, the income tax is paid up front and the contribution made after tax. Then, the funds can be invested tax-free. There will be no tax on the gains or the contributed amount at the time of withdrawal. Many investors choose to contribute to a Roth Solo401k to avoid the possibility of increasing tax rates in the future, or to take advantage of the tax-free earning benefit. Since taxes have been paid up-front, contributions can be pulled out tax-free before retirement. All Sense Financial Solo 401k Plans come with Roth-Account.