Retirement plans seem like a great benefit for large businesses but did you know even if you are a one person business (plus spouse) you can have your very own 401k? The one person 401k is one of the best retirement plans in existence today.
It is called the Solo 401k or Safe Harbor 401k. Basically, it works exactly like a regular 401k with the exception of no nondiscrimination testing. If you are not sure what non discrimination testing is then don't worry about it! You don't need to know with this plan!
To top that off, you can also open the 401k as a Roth 401k meaning that depending on your income you might be able to contribute $50,000 per year into a Roth account or $100,000 annually if you spouse works with you. If you use annuities for your Solo 401k investment you can also create guaranteed income for life.
The IRS has the best resource when learning about the 401k plan; just remember that the IRS calls it the Safe Harbor 401k. Visit their 401k Landing Page for all of the details. Keep in mind the IRS site is written in accounting terms but it is a great way to get started. Since tax law creates retirement plans, the IRS website is an original source. Technically, congress creates the law but I honestly don't how to find the original laws to peruse in my free time and I probably wouldn't anyway.
To learn more about the awesome benefits of the Solo 401k when combined with annuities read - Should Your Solo 401k Be Invested In An Annuity?
To learn more about why annuities belong in business retirement plans read - The Pros Of Annuities In Business Retirement Plans
Image by Kevin Dooley at Flickr.com
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