Who Should Invest in a Solo (Individual) 401k?

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It’s essential that all Americans have access to some kind of retirement savings account. It’s something the government and IRS need to always support because Social Security distributions are not intended to be the total extent of one’s retirement income.

For individuals employed by mid and large-size companies, investing for retirement is usually available to them through employer-sponsored retirement plans such as a 401(K) or 403(b) savings option.

That raises the question, “What’s the available option or options to the self-employed small business owner?”

Actually, the U.S. Government through the IRS has made several retirement savings options available to those with self-employment income.

Two of those options are the Solo 401(k) and a Simplified Employee Pension IRA (SEP-IRA).

While both of these options have a substantial following among American small business owners, the advantages associated with the Solo 401(k) have made it a bit more popular.

With that in mind, the following discussion is going to focus on the Solo 401(k) retirement savings…