You DON"T NEED A JOB for a 401k

(THREAD) All about Self Employed IRA

-Let's talk about how you can take advantage of Self Employment + Taxes and have your own 401k.

-I am a former licensed Financial Advisor with over 15 years experience with this...

So, if you do have a 9-5, a 401k allows you to save on taxes and lower your income by the amount you contribute. (Up to $19,500)

But if you don't have an employer, or they don't have a 401k, most will open an IRA.

But... maybe you shouldn't.

You see, a Traditional IRA or Roth IRA allows only for $6,000 per year contributed, and there are income guidelines.

If you start to make too much with your online businesses, you may not have the privilege of contributing to an IRA.

So, what do we do?

If you are "self employed" with any company formation, or even a Sole Proprietor, you most likely qualify for a SEP IRA, SIMPLE IRA, or Solo 401k.

But let's focus on a SEP and SOLO 401k.

First, a SEP IRA:

You can contribute up to 25% of your income up to $57,000. SEP is best if you are a one man band, otherwise you will need to contribute same for your employees.

Let's move on to 401k

The SOLO, or Individual 401k is very similar, allowing $57,000 total contributions.

-The difference is that SOLO 401k's can offer loan provisions and include more flexibility, much like an employer plan.

-E-Trade, Fidelity, and Schwab are all great options.

Now you can have your own company "retirement plan" for your business.

-It's always nice to look at my 401k statements that have the name of my company on it.

-Any questions, ask below.

Here's a good article with some further learning. https://smartasset.com/retirement/sep-ira-vs-solo-401k-which-is-better