Advice on a Solo 401K

[Tashzieanna Minter]

After starting my LLC I'm looking into starting up a Solo 401K with it. Came someone explain it more so I can get a better understanding?

[Justin Windham]

@Tashzieanna Minter

A Solo 401k is an IRS-approved retirement plan that is setup for a self-employed individual with no employees. Some plans allow for investment into alternative assets, such as real estate, in addition to the more traditional assets. Those are the plan types that many people on BP are interested in.

You can make tax-deductible (or Roth) contributions to the plan from your earned income, and you can also transfer in existing retirement accounts in most cases. The main exception is a Roth IRA, which cannot be transferred. Most current employer 401k plans do not allow for rollovers, but previous employer plans can be transferred.

Do you have any specific questions?