Solo 401k Plans

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any of you have a solo 401k retirement plans if you're self employed?

here it says http://www.research401k.com/self-employed-solo-401k.html

1) 100% Contribution Choice: You can contribute however much you want per year.

2) Higher Contribution Limit: You can contribute more funds than any other 401k account e.g a Roth IRA, traditional 401k, etc.

what is the contribution limit for a solo 401k?

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Solo 401k / Individual 401k
In 2006 the maximum contribution for an individual 401k is $44,000 or $49,000 if you are age 50 or older. There is some good information on individual 401k plans at www.individual401k.com .

http://www.individual401k.com/individual_401k/benefits.htm
Here is a cut and paste of the information from this link that explains the contribution amounts clearly.

Compared to other retirement plans you may be able to make greater contributions at identical income levels, therefore maximizing retirement contributions and valuable tax deductions.

In 2006, the total contribution limit for an Individual 401k plan is $44,000 ($49,000 if age 50 or older). The annual contribution into an Individual 401k is made up of 2 parts: a tax deductible salary deferral contribution and a tax deductible profit sharing contribution. The maximum allowable contribution calculation simply takes the profit sharing contribution and adds the maximum salary deferral contribution amount to it and that's the total allowable contribution.

In 2006, 100% of compensation up to a maximum of $15,000 ($20,000 if age 50 or older) can be contributed in salary deferral. In addition a profit sharing contribution can be made up to 25% of compensation. For incorporated businesses the 25% profit sharing contribution is based on W-2 income. For sole proprietors the 25% profit sharing contribution is based on adjusted earned income. Adjusted earned income is determined by completing an IRS worksheet and is calculated by taking gross self employment income and subtracting business expenses and 1/2 of the self employment tax (FICA and Medicare).

Dr Kingman

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