You may remember Clark talking about “solo 401k” plans in the past. It’s similar to a 401k plan that big companies offer, but it’s only available to entrepreneurs and small business owners. You can have independent contractors working for you, but you can’t have any other employees. In other words, it’s a single-person business. So, if you qualify, you can put enormous amounts of money into a retirement account. For example, a business owner can put twice as much money per year into a solo 401k as they can into a SEP. The two companies that offer these plans are Fidelity Investments and T. Rowe Price. The third of the big companies – Vanguard – does not offer a solo 401k yet. But, with the other two, you pay nothing to have them set it up. And you can enter “no load” mutual funds or a number of other options. So, if you are an individual running a business, this is available to you and it’s a great opportunity. You want to go through T. Rowe Price or Fidelity to set one up. Just remember that you have to set it up before the end of one year to start it the next.
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