Directed IRA Podcast
Solo 401(k) Contribution Limits and Deadlines - 2024
Dec 29, 2023
Explore the complexities of Solo 401(k) contribution rules, deadlines, and benefits. Discover the significance of employee and employer contributions. Decode the complexities of contributions in S Corporations. Get insights into 2023 and 2024 contribution limits and strategies for maximum contributions. Learn about the wealth-building capabilities of Solo 401(k)s for small business owners and real estate investors. Discover investment options and tax-saving strategies for Solo 401(k). Unveil the mega back door strategy for maximizing Roth contributions in Solo 401(k) plans. Understand the importance of early contributions for maximizing investment opportunities and enjoying tax-free growth.
32:49
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Quick takeaways
- Solo 401(k) contributions can be a combination of employee and employer contributions, with specific limits based on income and age.
- Setting up a Solo 401(k) plan by the year-end is crucial for S corporation owners to make employee contributions.
Deep dives
The Benefits of Solo 401(k) for Self-Employed Individuals
The solo 401(k) is an excellent retirement plan for self-employed individuals, real estate investors, and small business owners without employees. It allows you to contribute up to $66,000 per year in 2023, which is ten times more than an IRA. The contributions can be both Roth and traditional, giving you flexibility. The plan offers great investment tools and allows you to strategically mix contributions based on your preferred tax strategy. Additionally, if you have a spouse involved in your business, they can also contribute up to $66,000 per year.
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