Who Offers Solo 401K Plans?

Solo 401k Plans

Who offers solo 401k plans, and why are these plans so popular? This type of plan is used by self employed business owners when the business does not have any other employees. One of the benefits with this type of 401k plan is that the maximum 401k contribution per year is greatly increased, allowing you to put more away for your retirement. Many investment firms offer solo 401k plans, and it is possible for the account holder to choose the account holdings without requiring a brokerage or a firm to handle these transactions. The list of providers for these plans is extensive, and includes many well known and trusted names in the investing world.

Self employed retirement plans are important for anyone who is self employed or owns a business that has no other employees. Retirement planning is an important financial tool, and solo 401k plans allow individuals who do not work for someone else the same opportunity to start saving now for the future. Because the contributions to this type of 401k plan can be higher each year, the average 401k balance by age for a solo plan is higher as well. Yearly contribution limits are slightly less than fifty thousand dollars, and there are catch up clauses as well that may allow for additional amounts.

Some of the top providers of solo 401k plans include Capital Street Financial Services, Eagle Hill Wealth Management, Fidelity Investments, Ing Financial Partners, and Merrill Lynch. These plans also provide the benefit of not requiring a 401k rollover to IRA, and can offer financial security during the retirement years. These plans allow for investments in gold and other precious metals, securities, and other options that traditional 401k plans may not allow. If you are a business owner and self employed then solo 401k plans can help you plan ahead for the future.