Fidelity solo 401k investment options
Most people immediately associate k plans with large employers, but there are actually k options available to the self-employed as well. Individual k s are not much different from traditional k s, except they are specifically designated for sole proprietors with no employees. However, spouses may contribute if they earn income from the business.
Individual k s come in a traditional and a Roth version, just like IRAs. With the traditional option, individuals save money on a pre-tax basis and it remains tax-deferred until withdrawn, at which point it is taxed. With the Roth option, individuals invest their money after taxes and the money grows tax-free, so it is not taxed upon withdrawal.
Sole proprietors can split their contributions between both types of accounts. Even people who do not make their entire income from self-employment can be eligible for individual k s, as long as you claim some self-employment income. For example, if you have a full-time job with a company and do some freelance consulting on the side, that side income qualifies you for an individual k. They allow you to put money away as an employer and an fidelity solo 401k investment options, which makes it possible fidelity solo 401k investment options contribute more than allowed by other plans.
There are exceptions to this rule, such as purchasing a first home, making payments to prevent eviction or foreclosure, fidelity solo 401k investment options education expenses, or costs from the onset of a sudden disability.
They involve more paperwork and many of the firms that help you set up these plans will charge setup and annual fees, depending on the level of service and size of the account. Fees vary widely, so it is important to do research. If you decide that an individual k is right for you, there are a range of providers who can help you set one up. As opposed to corporate k s, which offer dozens of choices, individual k s will restrict your investments to one fidelity solo 401k investment options group.
Individual k s are just one of the multiple options available to help fidelity solo 401k investment options proprietors save for retirement. If you do not plan to hire any employees and you plan to save a substantial amount, an individual k may be the best choice for you. Millionaires have been relying for decades on financial advice like ours: What's an individual k plan? What are my saving options? Get your free, personalized investing plan now.
Are you ready for intelligent investing? Start now for free or log in to your account.