A Supercharged Retirement Plan, Designed For Business Owners

Ocho Investment Advisors LLC (“Carry Advisors”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC), and uses bank-level security and state of the art encryption to keep your data and money safe. Brokerage and custody services are provided by DriveWealth LLC, a SEC registered broker-dealer and member FINRA/SIPC. SIPC, or the Securities Investor Protection Corporation, currently protects the securities and cash in your account up to $500,000 of which $250,000 may be in cash. SIPC does not protect against the market risks associated with investing. Investing in securities involves risk and there is always the potential of losing money. Asset allocation and diversification do not guarantee a profit or protect against a loss, and past performance is no guarantee of future results.

Additionally, like all 401(k) plans, your Carry Solo 401(k) is set up as a retirement trust, with you appointed as the sole trustee and plan administrator. In the unlikely event that Carry were to go out of business, your 401(k) and trust would remain in existence, and all funds would remain under your control. While Carry helps set up your solo 401(k) plan, you remain the plan administrator and trustee at all times, and Carry never has custody of your funds, meaning they are owned and titled by your 401(k) plan, not by Carry. If Carry were to close, you could choose to keep your money with DriveWealth (if you change to a new advisor) or transfer the assets to your bank account.

Apart from the flat annual subscription fee, Carry does not charge any additional fees or hidden charges, and there are no fees on your assets under management (AUM) when using the optional integrated brokerage account through Carry Advisors. You get all the premium features of Carry for one all-inclusive price. While Carry does not charge any additional fees apart from the flat annual fee, there may be fees charged by Drive Wealth, ETFs and funds you choose to invest in, and trading commissions. There may also be fees if you choose to invest through your solo 401(k) plan outside of the Carry application. Carry Advisory may also charge advisory fees at some point in the future, to future customers. Any changes to our fee structure will be communicated beforehand.

When you sign up for the Carry Solo 401k, you’re given three different accounts: Traditional (pre-tax), Roth (post-tax), and an after-tax account.

Contributions made to your traditional (pre-tax) account are tax-deductible. If you’re looking for the largest tax deduction possible, you can make all your contributions as pre-tax for the year and deduct up to $61,000 ($67,500 if age 50+) for 2022 and $66,000 ($73,500 if age 50+) for 2023.

For comparison, contributions made to your Roth (post-tax) account are not tax-deductible but allow you to take tax-free withdrawals in retirement. The after-tax account is a special-use account that we have solely for executing the mega backdoor Roth solo 401k.

When you sell assets in your account for a profit, you don’t pay any capital gains taxes. Instead, 100% of your earnings go straight back into your solo 401k account where it can get reinvested.

For example, if you invest in a rental property through your solo 401k, all profits earned from rental income are tax-free – no capital gains taxes owed. If you decide to sell the property, all profits from the sale are also tax-free^*.

For 2022, you can contribute up to $20,500 into your Roth solo 401k. If you’re at least 50 years of age, you can contribute up to $27,000.

For 2023, you can contribute up to $22,500 into your Roth solo 401k. If you’re at least 50 years of age, you can contribute up to $30,000.

Carry also supports the mega backdoor Roth solo 401k, which allows you to contribute more money into your Roth solo 401k than is typically allowed. If you perform a mega backdoor Roth solo 401k with Carry, you can contribute up to $61,000 ($67,500 if age 50+) for 2022 and up to $66,000 ($73,500 if age 50+) for 2023. If this sounds confusing to you, don’t worry – we’ll help guide you through it.

There’s no need to take your plan docs and go searching for a third party that will accept your solo 401k plan documents (unless you want to!). Easily open any accounts you need within Carry^*.

When you sign up for a solo 401k plan, you get access to the optional integrated brokerage account. Additionally, you can use the solo 401k to open separate, third party bank and brokerage accounts, if you wish to invest in alternative assets or through a different investment advisor or brokerage.

As the plan administrator, participant and trustee of your plan, you will have full checkbook control over any third party accounts and can write checks and wire funds directly when you want to make an investment. For example, if you want to buy crypto, you would open a new account with an exchange using your solo 401k plan trust as the owner, and fund your account using your solo 401k bank account. If you want to invest in a startup, you would simply write a check from your solo 401k plan trust bank account. We will assist with the account opening process if you require any information or help using your plan documents to open a third party account^*.

If you have any other questions that weren’t answered here, contact us anytime by clicking on the chat bubble icon at the bottom right corner of your screen.