This Solo 401K overview has been revised with information for 2023 & 2024 tax years, part of my multi-part series on retirement accounts for self-employment income. In part one I covered SEP IRAs; here, in part two, Solo 401Ks will be discussed. Having started and contributed to both, as well as covering SIMPLE IRAs separately later on this series should hopefully prove educational.
What Is a Solo 401K (Individual 401K)? A Solo 401K has multiple names, all referring to the same type of account. These names include Individual 401K (i401K), Solo-K, Self-Employed 401K (SE401K), Uni-K and One Participant 401Ks – though technically speaking this designation comes from the IRS rather than being commonly used among professionals and clients. Depending on who’s asking: “what exactly”! For this article we will refer solely to Solo 401Ks when discussing them.
No matter its many names, all refer to the same thing: a 401K plan designed for self-employed individuals or those without employees that includes their spouse.
+ There are no comments
Add yours