The Big Idea
Not all solo 401(k)'s are the same... and the differences can be very profound.
Points To Ponder
- A 401(k) is an employee-sponsored salary deferral and profit sharing plan. It can be both, one or neither of "Solo" or "Self-Directed"
- Solo 401(k)'s offered by stock brokerages tend to exclude all assets other than stocks, bonds and mutual funds.
- The law doesn't require a 3rd party custodian/trustee for your 401k, but some providers do
- Your plan will be more flexible as a trustee-directed plan than as an individual-directed plan... as long as you're the trustee!
- The expertise and availability of the provider of the solo 401(k) plan is the most important distinction
Resources
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