Solo 401K accounts and the Mega Backdoor Roth
If you have a side gig, there’s a powerful way to grow your wealth while protecting it from taxes. In this episode, we delve into the benefits and nuances of Solo 401ks and the advanced Mega Backdoor Roth IRA strategy. Discover how a Solo 401k lets you contribute as both an employee and employer, and how it can be an excellent option for self-employed professionals and those with side gigs. We also break down the distinctions between basic and 'fancy' Solo 401k plans, highlighting the significant tax advantages and contribution limits. Additionally, the discussion includes potential drawbacks, such as the need for a third-party administrator and additional IRS reporting requirements, ensuring you have a comprehensive understanding to make informed financial decisions. Don’t miss this deep dive into smarter, tax-efficient investing!
[00:05:25] What is a Solo 401k and How Does it Work?
[00:10:44] Employee and Employer Contributions Explained
[00:14:59] Tax Benefits and Financial Strategies
[00:17:45] Choosing the Right Retirement Account
[00:22:21] Maximizing Contributions with Mega Backdoor Roth
[00:27:48] Setting Up a Customized Solo 401k
[00:30:24] Drawbacks and Considerations of a Solo 401k
[00:37:28] Brittne’s latest sweatsuit find and Lisha’s cousins’ cruise vacation to Greece!
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🎉This episode is sponsored by PKA Insurance Group, Inc. - Helping you find the best value with personalized insurance solutions. Reach out to PKA Insurance Group to discuss your disability or life insurance needs by calling +1 800-258-1018 or emailing [email protected].
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