Solo 401k Contribution Limits – How It Is Different Than Other Retirement Plans

The Self-Directed 401k retirement plan by Sense Financial is definitely different than any other retirement accounts out in the market such as the New York Life 401k and Keogh Plans. You can spot the difference in a lot of ways including the Solo 401k contribution limits. The maximum annual contribution of the Individual 401k account is definitely much higher compared to other plans available today.

Up Close Details about the Solo 401k Contribution Limits

The Owner-Only 401k plan is dubbed as the ultimate qualified retirement account ideal for those who are looking for retirement accounts with the highest annual maximum contribution. Why is a higher contribution much better compared to lower ones? The concept is actually quite simple. The Individual 401k allows you to save bigger with this type of setup. Thus if you want a much lucrative retirement account that gives you the chance to save bigger, go for the Solo 401k contribution limits.

How much do you need to contribute yearly?

The maximum annual contribution for the Solo 401k retirement plan is $57,500 inclusive of the profit sharing and catch up contribution. The employee salary deferral for plan owners below 50 years of age is $17,500 while the catch up contribution of $5,500 is allowed for plan owners who are 50 years old and above. Profit sharing contribution is up to 25% or for single member LLC or sole proprietorship, the allowable contribution is 20%. Profit sharing contribution combined with the salary deferral equals to the yearly Solo 401k contribution limits not exceeding $51,500.

Can you benefit from the Owner-Only 401k?

Most people are setting up and establishing the Individual 401 k retirement plan not only because of the high contribution limits. There are other known upsides if you choose this type of retirement account over others in the market. For instance, you get a wide spectrum of investment options to choose from. Maximize your earnings and retirement savings through investing in real estate, precious metals and foreign currencies among others. The Self-Directed 401k also allows you to use your money with the easy Checkbook Control. Invest your retirement funds on the industry of your choice as easy as writing a check.

Know the different features of this retirement plan and the highest Solo 401k contribution limits to determine how you can get the most from our retirement savings. The bigger you save the more money you can use.