401GO’s Post

Did you know that the federal government will pay an employer to open a retirement plan for their employees? HBKS Financial Advisor Jon Frawley, CRPS®, AIF® provides eligibility requirements, types of tax credits, workplace examples, and the process for claiming credits. #RetirementPlan #SmallBusiness #TaxCredit #FinancialPlanning

How to Choose Between a SEP IRA and a Solo 401(k) In September of 2023, 16.5 million Americans are currently self-employed, according to the Bureau of Labor Statistics. This constitutes for more than 10% of the workforce. SEP IRAs function as tax-advantaged retirement savings accounts, allowing self-employed individuals and small business owners and their employees to benefit from simple, tax-efficient investment vehicles akin to personal IRAs. Solo 401(k) plans, also known as individual 401(k) or one-participant 401(k) plans, are tailored specifically for self-employed individuals. Read more at the rest of our blog! https://lnkd.in/g3x9mH_m

𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫𝐬: feel like you’re missing out on some great “company sponsored” benefits? There’s a retirement plan where you can get more savings capacity, and more potential tax savings than your W-2 counterparts! 𝐓𝐡𝐞 𝐒𝐨𝐥𝐨 𝟒𝟎𝟏(𝐤) 💵 Here’s what it is, and who it’s for: - A Solo 401(k), or the IRS defined: “one-participant 401(k)”, is an employer sponsored retirement plan available to anyone who is self-employed or owns a business with no employees (other than your spouse). This includes sole proprietors, LLCs, S Corps, C corps, and partnerships - Pre-tax contributions to a Solo 401(k) plan are tax deductible, and a Solo 401(k) has a significantly higher contribution limit than a Traditional or Roth IRA. For 2024 the Solo 401(k) contribution limit for elective deferrals is $23,000 if you’re age 50 and under and $30,500 if you’re over 50. The TOTAL contribution limits can go as high as $𝟔𝟗,𝟎𝟎𝟎 ($𝟕𝟔,𝟓𝟎𝟎 𝐟𝐨𝐫 𝐨𝐯𝐞𝐫 𝐚𝐠𝐞 𝟓𝟎)! - Your account in the plan can receive contributions form yourself as the employee AND from yourself as the employer (This is limited to 25% of your compensation or net self employment income). - A Roth Solo 401(k) is another available option and, unlike Roth IRAs, does NOT have an income limitation! - 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐰𝐡𝐞𝐫𝐞 𝐭𝐡𝐞 𝐩𝐚𝐫𝐭 𝐚𝐛𝐨𝐮𝐭 𝐠𝐞𝐭𝐭𝐢𝐧𝐠 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝐲𝐨𝐮𝐫 𝐜𝐨𝐮𝐧𝐭𝐞𝐫𝐩𝐚𝐫𝐭𝐬 𝐜𝐨𝐦𝐞𝐬 𝐢𝐧: As mentioned earlier, these plans are not available to entrepreneurs with employees, HOWEVER, a spouse does not count! This means you could hire your spouse and effectively double the benefits available to you. - The Solo 401(k) has been maligned in the past as being difficult to setup/maintain as well as more expensive than other options like a SEP IRA plans. However, in recent years it’s become easier and easier to set up/open/maintain these plans. - Given the flexibility, potential for higher contribution limits, and Roth options make the Solo 401(k) plan the best choice for most successful entrepreneurs. Send me a direct message with questions about your situation 👍🏼

Timely 401(k) deposits are crucial for compliance and avoiding penalties. Employers can use the DOL's Voluntary Fiduciary Correction Program to rectify late deposits and protect employees' retirement savings. #401k #ERISA #retirementplan #retirecomfortably

Considering retirement options for small businesses and the self-employed? Explore the differences between a SEP-IRA and a solo 401k. While both offer similar contribution limits, a key distinction is the ability to borrow from a 401k, an option not available with an SEP-IRA. Dive deeper into the comparison here: [Link to article] #RetirementPlanning #SmallBusiness #SelfEmployed Gary M Albert CPA MST CSSCS CFSWC Trauma of Money Certified Practitioner https://lnkd.in/erhQDaNa garadajt@gmail.com

Finding the right #retirement plan at a workplace can oftentimes be tricky. Did you know that some #employers offer a 401(K) and a Roth 401(K)? While these two #investing vehicles may seem alike, under the hood they are totally different. To find out the difference click on my latest #newsletter below, or #call my office at 309-820-7443. You can even email me at scraig@investment-planners.com.

The SECURE 2.0 Act's new rules for 401(k) plans could bring major challenges for multiemployer plans. While the Act aims to boost retirement savings, its administrative complexity may lead to errors and increased costs. Dive into this #Milliman article for a detailed look at these challenges. #SECURE20 #401k #MultiemployerPlans https://ow.ly/jWmi50QwUvy

ATTN: solopreneurs/sole practitioners - "If you’re considering establishing a SIMPLE or SEP Plan, a Solo 401(k) may be a better choice. Why? Typically, the 401(k) plan offers more features, like Roth deferrals and loans, than either the SEP or the SIMPLE IRA. It may also enable you to contribute more, maximize your tax-deductible contributions, and help you meet your long-range retirement goals."https://lnkd.in/gq_T8HM6

Many employees mistakenly believe their #retirementplan assets will be distributed according to their will or trust when they pass away. But, #retirement accounts are governed by their own rules, meaning a named #beneficiary. As an employer, you can play a vital role in helping your employees keep their beneficiary designations up to date. Here are a few #401kbestpractices to help your employees safeguard the financial futures of their loved ones. #401k #plansponsor #HR #HRinsights #HRExecs #HRbenefits #CFO #SG401k Craig Stanley, CPA CPFA Lieren Timeus, CFP®, CPFA Colin Ragsdale, CPA CPFA Sarah DeLacey

Timely 401(k) deposits are crucial for compliance and avoiding penalties. Employers can use the DOL's Voluntary Fiduciary Correction Program to rectify late deposits and protect employees' retirement savings. #401k #ERISA https://lnkd.in/gqRT-DGY