Many people mix up the difference between a tax credit and a tax deduction. They’re both designed to reduce the amount of taxes you owe to the IRS, both are available to a variety of individuals, including employees, self-employed individuals, and business owners, and both come from expenses you incur or activities you participate in […]
The 2023 tax year is coming to a wrap, and the 2022 tax season still has some important deadlines remaining. It’s time to start preparing your 2023 tax return, as well as keep up with important deadlines coming up for the 2022 tax year. There are many important dates to remember. Here’s every important tax […]
Here is a list of the most interesting and important statistics about retirement plans in the US. Click on any of the links below if you’d like to jump forward. The state of retirement plans in the United States Retirement plan savings stats Retirement plan contribution stats Retirement confidence Retirement age & income stats Social […]
OVERVIEW Considering starting a solo 401k? Download the Solo 401k Handbook: Everything you need to know in a handy PDF: There seems to be some confusion around what business entities are eligible to open a solo 401k account. Because it’s called a “solo” 401k, and also often referred to as an individual 401k or a one-participant […]
OVERVIEW The solo 401k and SEP IRA are retirement accounts created for small business owners and self-employed individuals. Both have the same contribution limits, offer tax-free compounding on investments, and all business entities are eligible. A solo 401k offers more tax advantages than a SEP IRA, but has stricter eligibility requirements. Depending on your business, one might make […]
The highest contribution limits, ability to invest in any asset class with tax-free compounding, and a supersized Roth account.
OVERVIEW & FAQ A solo 401k has no annual tax filing requirements set by the IRS, unless your account assets exceed $250,000 in value. Account holders with over $250,000 in assets must file Form 5500-EZ each year. However, pre-tax contributions made to a solo 401k are tax deductible, so you still need to claim the deductions when […]
Any business entity is eligible to open and contribute to a solo 401k plan as long as they meet the general solo 401k eligibility rules. An S corporation is also allowed to open a solo 401k, but there’s one additional eligibility rule if it has multiple shareholders. Here’s everything you need to know about opening a solo […]
LLC stands for Limited Liability Company, and it’s one of the most common business structure in the U.S. An LLC, and any other business structure is eligible to open a solo 401k. However, there’s a small difference in how employer contributions get calculated depending on if your LLC is incorporated or taxed as a sole proprietorship. […]
