As a self-employed professional, you have the ability to set up a solo 401(k) plan that offer you the same benefits available to those who work for employers that offer traditional 401(k) plans. Your old 401(k) (regardless of the amount) can be rolled over without any tax consequences or penalties into an individual 401(k) plan that you set up as a self-employed professional. Your advantage as a self-employed professional with your own individual 401(k) plan is that you get to determine the investment options, are able to contribute significantly more through individual contributions ($18,500 for 2018) along with contributions from your company (up to 25% of annual earnings) up to $60,000 annually. As long as you don’t have employees your plan will not be subject to ERISA discrimination testing which will allow you to make maximum contributions to fund your retirement plan.
Article provided by PWAR Affiliate Member:
Will Smith, IFS Consulting Group LLC
571732.1100
will@inov8ivefs.com