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LegalCornerTM - Retirement Accounts F.A.Q.'s

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Q.What is a Solo 401(k)?

A.Just a test

The Solo 401K (also known as the individual 401(k) and Self-Employed 401(k)) is a retirement savings plan for the self-employed individual, corporation, limited liability company, and partnership (husband and wife), with no full time W-2 employees other than the owner and his or her spouse and children.

The administrator of the Solo 401(k) Plan is the business owner, his or her spouse or a partner.

In 2008, the maximum contribution to a Sole 401(k) is $46,000 ($51,000 if age 50+). With the Solo 401(k), the owner-employee can tax defer up to $15,500 a year as employee contribution and the business can deduct up to 25% of your compensation (net income) up to 46,000 per year ($51,000 if age 50+) as an employer contribution.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this web site is not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed on a taxpayer under the U.S. Internal Revenue Service.

Copyright 1999-2024 Melissa C. Marsh. All Rights Reserved. All Information on this website is subject to a Disclaimer and Use Agreement. This information is provided as general information only and should not be construed as legal advice. We advise you to seek the advice of competent legal counsel to address your own specific questions, facts and circumstances.