Solo 401(k)
As you would probably imagine, solo 401(k) has all the advantages of a company 401(k) plan, but with MORE benefits. You can go for any traditional option or even a Roth 401(k) one, which means that you’ll get the ability to contribute before-tax but also after-tax dollars.
If you’re worried that you won’t be able to invest virtually in an asset class, don’t be. You can do that too. All you have to do is pick a broker that will offer you a free solo 401(k), either Fidelity or Schwab are good choices, and you won’t have to pay any additional costs.
If you have a solo 401(k), you can make employee contributions. In 2022, you can make up to $19,500! Also, those who want can also make employer contributions up to 25 % of their company’s profits.
Those who are aged 50 or older can put in an additional $6,500 as a catch-up contribution.
This will fit best those who have one-person businesses or those with one person and a spouse. Also, it works for those who have a side gig!
