than ever before, and benefit from bigger 401(k) plan deductions than they’ve ever seen.
These 401(k) plans have been dubbed “solo” 401(k) plans because of the new rules’ popularity among single-owner businesses. Yet, it is possible to have more than one owner and maintain a “solo” 401(k) plan, as noted below.
To obtain the benefits for the 2003 tax year, however, you must act before December 31st. (For more about the types of investment services our investment affiliates offer, please visit http://www.marcjlane.com/decisiontree.htm) In contrast, SEP IRAs can be established at the same time your individual income tax return is filed (i.e., April 15 of the following tax year).
This report highlights some of the significant benefits of a solo 401(k) plan.
A solo 401(k) plan allows a small business owner and his or her family to defer and invest tax-deductible (pre-tax) retirement contributions at a fast rate. The importance of maximizing retirement plan contributions cannot be emphasized enough. Over time, compounding tax-deferred investing can significantly increase one’s wealth