COLLECTED WISDOM™ on Solo(k) Retirement Plans

The self-employed used to say that 401k plans weren't in tune with their needs-but thanks to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), they're now singing their praises. While EGTRRA did not explicitly create a new type of retirement plan, it made a number of constructive changes to existing laws governing 401k plans. In doing so, the legislation had an unintended benefit - one that caters to the distinctive needs of small businesses where the owner or owners are the only employees - increased contribution limits.

Here is information to help you understand and pursue a Solo 401k plan.

Solo 401k Contributions - Summary: If you have a home business, one way you can lower your taxable income for the year is to open a solo 401k and make a contribution. Source: Personaldividends.com, December 2010.

Consider a Solo 401k - Summary: One of the major issues facing the self-employed is how to save for their retirement. If you work for a company you likely have a 401k plan or other retirement savings vehicle available to you. If you are a self-employed you will need to establish your own retirement savings program. One option to consider is the Solo 401k. Source: Chicago Financial Planner, September 2010.

Launch a Solo 401k for Small-Business Clients - Summary: Many small-business clients run their operation as a one-person show. Once the business has turned the corner, the owner can focus on setting aside more funds for retirement. And the more he or she can save each year, the merrier the client will be. Strategy: Point out the benefits of a solo 401k plan. Source: Accountingweb.com, June 2010.

Solo(k) Provider List - Summary: Free List of Solo 401k Vendors Available from 401khelpcenter.com. Located on: 401khelpcenter.com.

Solo(k) Plan Contribution Calculator - Summary: Free calculator to help you determine whether a Solo 401k is right for you when it come to contributions. Located on: 401khelpcenter.com.

Savvy Self-Employed and the Solo 401k - Summary: The Solo 401k is designed for the self-employed and offers powerful features not found in traditional 401k or IRA retirement plans and offers unique tax benefits to those who open an account before the New Year. Source: 401khelpcenter.com, November 2009.

Solo 401ks Pack a Retirement Punch - Summary: For many self-employed individuals the solo 401k is a better retirement plan choice due to generous contribution limits that allow you to sock away a lot of cash for retirement and save on taxes. Source: Thestreet.com, February 2009.

The Perks of the Solo 401k - Summary: If you're the sole proprietor of a small business, you probably know that you've got some terrific options to choose from when it comes to setting up a tax-advantaged retirement account. But here's one you might not have thought of: a solo defined-benefit plan. Source: Smartmoney, January 2008.

The Solo 401k - Summary: The so-called solo 401k plan got a hefty makeover thanks to tax-law changes a few years ago and is expected to revolutionize the way many self-employed folks save for retirement. Source: Smsmallbiz.com, December 2007.

SEP vs. Solo 401k - Summary: The best choice for you depends on your self-employment income for the year. It's easier to set up a SEP, but you may be able to contribute more money by opening a solo 401k. Source: Kiplinger, December 2007.

Solo 401k Plans - Great Benefit for the Sole Proprietor - Summary: Solo 401k plans are ideal for individuals who can save large sums. With an individual 401k, you save both as an employee and an employer. That feature allows the typical business owner to put away more than in most retirement plans. Source: Accountingweb.com, June 2007.

The Single-Participant 401k - Summary: The 401k plan has been around for more than 20 years, permitting Americans to amass billions of dollars in retirement assets. With the passage of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) millions more self-employed or small business owners with no employees (other than their spouse) have a new incentive to set up a 401k plan and increase their retirement savings. The new rules apply to both incorporated and unincorporated businesses. Located on: Journal of Accountancy, March 2003.

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