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ATENCIÒN: Solo 401(k)

April 3, 2017

A Solo 401(k), (also known as a Self Employed 401(k) or Individual 401(k)), is a 401(k) qualified retirement plan for Americans that was designed specifically for employers with no full-time employees other than the business owner(s) and their spouse(s). The general 401(k) plan gives employees an incentive to save for retirement by allowing them to designate funds as 401(k) funds and thus not have to pay taxes on them until the employee reaches retirement age. In this plan, both the employee and his/her employer may make contributions to the plan. The Solo 401(k) is unique because it only covers the business owner(s) and their spouse(s), thus, not subjecting the 401(k) plan to the complex ERISA (Employee Retirement Income Security Act of 1974) rules, which sets minimum standards for employer pension plans with non-owner employees. Self-employed workers who qualify for the Solo 401(k) can receive the same tax benefits as in a general 401(k) plan, but without the employer being subject to the complexities of ERISA.
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401(k)
In the United States, a 401(k) plan is the tax-qualified, defined-contribution pension account defined in subsection 401(k) of the Internal Revenue Code.[1] Under the plan, retirement savings contributions are provided (and sometimes proportionately matched) by an employer, deducted from the employee’s paycheck before taxation (therefore tax-deferred until withdrawn after retirement or as otherwise permitted by applicable law), and limited to a maximum pre-tax annual contribution of $18,000 (as of 2017).[2][3]

Other employer-provided defined-contribution plans include 403(b) plans for nonprofit institutions, and 457(b) plans for governmental employers. These plans are all established under section 401(a) of the Internal Revenue Code. 401(a) plans may provide total annual addition of $53,000 (as of 2015) per plan participant, including both employee and employer contributions.

WIKIPEDIA SOURCES:
1
https://www.google.dk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwi9q461xofTAhVFiiwKHek0D9kQFggnMAE&url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FSolo_401(k)&usg=AFQjCNGGO0MLUc2cB53ZkYX0jSVGZr0-UQ
2
https://www.google.dk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwi9q461xofTAhVFiiwKHek0D9kQFggZMAA&url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2F401(k)&usg=AFQjCNGWNG5WvqHXwMCeDDAMK1Nde-WuZg

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