Birchtree
Well-known member
dell,
The solo-retirement plan is known as a Uni-K plan and business owners can make both employer and employee contributions. You can find more information on-line by looking at Pioneer Investment Management based in Boston and owned by UniCredito Italiano Group. They have annual charges of $100 and these plans are offered with no setup charges. As a one-person business you can stash unusually large sums in this type of 401(K), thousands of dollars higher than in most other types of tax deferred plans. Because Pioneer is a mutual fund you may be limited to selecting mutual funds. There may be a 25% of pay cap but employee deferrals aren't counted toward the 25% of pay limit - making it possible for one person business to make a large employer contribution and then also make the maximum $20,500 a person deferral - that includes the over 50 catchup. There is a flat dollar cap which I think is around $60,000. The one-person 401(K) offers the biggest potential benefit for one-person businesses earning between $50,00 and $160,000. Check out the Uni-K plan before opening a SEP IRA. Hope this might help - if you don't need your working income you would be working for your retirement. Take care.
The solo-retirement plan is known as a Uni-K plan and business owners can make both employer and employee contributions. You can find more information on-line by looking at Pioneer Investment Management based in Boston and owned by UniCredito Italiano Group. They have annual charges of $100 and these plans are offered with no setup charges. As a one-person business you can stash unusually large sums in this type of 401(K), thousands of dollars higher than in most other types of tax deferred plans. Because Pioneer is a mutual fund you may be limited to selecting mutual funds. There may be a 25% of pay cap but employee deferrals aren't counted toward the 25% of pay limit - making it possible for one person business to make a large employer contribution and then also make the maximum $20,500 a person deferral - that includes the over 50 catchup. There is a flat dollar cap which I think is around $60,000. The one-person 401(K) offers the biggest potential benefit for one-person businesses earning between $50,00 and $160,000. Check out the Uni-K plan before opening a SEP IRA. Hope this might help - if you don't need your working income you would be working for your retirement. Take care.
