Open a Solo 401k Plan for Multiple Self-Employed Businesses

Background:

I’m a blessed business owner with 3 businesses and I’ve always maxed out my traditional IRA. My CPA is suggesting I open another form of retirement and I’d rather stay away from the stock market.  I am the sole owner and only employee of all my businesses.

Answer

A solo 401k is for owner-only businesses with no full-time W-2 employees.  Therefore, as long you don’t employee any full-time W-2 employees in any of your businesses, you could setup a solo 401k plan and make contributions to it based on the aggregate net self-employment income from all of your businesses.

For 2020

With a Solo 401(k), depending on your salary and age, you could contribute $57,000 per year or $63,500 for those 50 or older in 2020.

For 2021

For 2021, the contribution limit increased to $58,000 or $64,500 if age 50 or over.

Solo 401k contributions are based net- income from self-employment (i.e. you can’t contribute more than you make).

Based on the information that you presented above, you can set up a Solo 401k and take advantage of the following features of our plan:
  • Make 2020 contributions up to $57K (or $63.5K if you are 50 or) provided that you sign up by 12/31
  • Mega Backdoor Roth contributions
  • 401k participant loans including preparation of loan documents for no additional charge
  • Invest in alternative investments with checkbook control including real estate, cryptocurrency, notes, etc

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*
*

  •  

  • Popular Video

  • ROBS 401k Funding Process

  • Solo 401k Contributions Including Mega

  • Checkbook IRA LLC

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571

    Monday-Friday

    8:00 am - 4:00 pm PT

    Why us?
MENU