The Solo 401 k maximum is just one of the many features of the retirement plan that offers wealth-building opportunities to plan participants. The 401 k contribution limits are ten times higher compared to other plans according to the Solo k experts. Plan owners enjoy bigger retirement savings to invest in a wide range of lucrative investment options. The secret to productive investment starts with the most viable Solo 401 k maximum contribution.
Solo 401 k Maximum Contribution Updates
As of 2015, the Individual k annual contribution limit for participants who elect the self-deferral option is $18,000. An additional $6,000 catch contribution is allowed for participants who are 50 years old and older. The Solo 401 k maximum contribution limit for the profit sharing contribution on the other hand is up to $59,000, inclusive of the catch-up additional value. If the business owner or participant’s spouse makes the same contribution, the total yearly contribution from both participants for the same retirement plan is up to $118,000.
According to the Solo k rules and regulations, the participant must elect an employee deferral or profit sharing contribution by the 31st of December of the current fiscal year. Aside from complying with the Solo 401 k maximum contribution limit, the participant is required to specify what kind of contribution he prefers to make. The actual contribution on the other hand is allowed to be made until the next tax-filing deadline which is usually April of the following year.
The Solo Roth 401 k Contribution
Plan participants may opt to rollover their account into the Roth 401 k account where they can make after-tax contributions. The retirement funds from a Roth Solo k account could be used for investment on several investment fields. Make sure you comply with the Solo 401 k maximum limit to enjoy tax-free generated income that will be directed to the Solo 410 k account of the plan participant and retirement investor. Plan owners enjoy a wide array of investment options from real estate to stocks and bonds. The Individual k retirement fund is also usable for investing in precious metals and money lending.
The best way to enjoy the benefits of the 401 k retirement plan is to primarily follow the rules especially in terms of the Solo 401 k maximum contribution limit. Know your contribution obligations and deadlines to experience wealth-building and its countless benefits.
- 401 k contribution limits
- Solo Roth 401 k
- Solo k maximum contribution
- Roth Solo k sub accounts
- 401 k retirement plan