If you are over the age of 50 and have not yet started your account you are allowed to add another $5,500 per year under the “catch up” clause. Once you have reached your maximum allowable contributions each year, you will not be allowed to add any more funds to your account until the following year. But if your spouse is a part of the business and also a part of the play, they can also have a Solo k account with the same contribution limits. You will find that there are several advantages to investing in a Solo K retirement plan. Other than the obvious fact that you will be saving for the day when you can finally retire, the biggest advantage is that all of your contributions are tax deductible. All of the money you earn from your investments is tax deferred until you retire and start using your Solo 401K as your source of income. This can make a significant difference in your tax liabilities each year.
If you plan to manage your Solo K yourself you will be required by law to appoint a custodian or trustee to hold your assets. You can designate yourself as trustee, but you will find that not only does this take a lot of planning, it comes with a lot of responsibilities. You will need to draft a very detailed plan of action and implement it. This plan will need to lay out the guidelines and rules you plan to abide by in order for the plan to be functional and remain within the auspices of the laws governing it. But not having a custodian can save substantial dollars as long as the plan is created and maintained properly. As the Solo K is still a relatively new type of retirement account you may find that there are very few financial institutions that offer one. Fortunately you will find that by spending a little time conducting research online, that there are sites that can help connect you with the right financial services you need to get started.
Once you make the decision to start your Solo K, you should turn to Freedom Growth to help you learn how to start and maintain your new retirement account. Here you will find the help of many professionals who are experienced in the field of retirement investing. You will receive a detailed plan of action and what it will cost to have them get started implementing your new account. This way you will know exactly what to expect and how much it is going to cost you before you get started saving for your future.
