If you are a solo practitioner looking for a 401K, Bridge Benefits Group can help you obtain a plan. We custom design Solo 401K Plans that fit your personal needs. With our experience in the retirement plan industry and as your co-fiduciary on your plan, you can be assured that we are always acting in your best interest and make sure the plan is compliant with Department of Labor Regulations.
Solo 401K Plans operate similarly to a 401K Plans; however, these plans are exclusively for business owners with no employees. A Solo 401K Plan allows business owners to make contributions as both an employee and as an employer. Further on, the spouses of the business owners who derive income from the business can make also make contributions.
A Solo 401K is designed for the business owner without any employees, however it operates the same way as a standard 401K Plan. The business owner is able to make contributions from their pre-tax earnings, and those monies can be invested in a range of investments to grow tax-deferred until it is needed in retirement.
The Solo 401K does differentiate from a standard 401K in one primary way: because participants are acting as both employer and employee, they may be able to set aside more money on a year-to-year basis than they would be able to in a standard 401K, IRA, or other small business account. The high contribution limits, combined with relatively easy plan administration, make Solo 401Ks a viable option for business owners who meet the plan’s requirements and want higher savings potential.