Solo 401(k) plans are one of the most useful retirement investment accounts for self-employed individuals. Curt explains their similarities and differences to normal 401(k) plans and how you can leverage Solo 401(k)s to maximize their impact on your net worth.

00:00 – Start
00:39 – Solo 401(k) Basics
01:43 – How to Save More
03:16 – Spousal Contributions
04:07 – Where to Set One Up
05:33 – Wrap Up

Our 401k Playlist:
Our HSA Playlist:
Our IRA Playlist:
Our Roth IRA Playlist:
Our website:

Other Videos:

Other Related Blog Posts from
How to Use Qualified Charitable Distributions to Reduce RMDs:
What Are the 2024 401k, IRA, and HAS Contribution Limits?
What Should I Do With My 401(k) When I Leave My Job?
Should I Have Both a Roth IRA and a 401(k)?
Which Retirement Plan is Best for Me? Ranking the Options:

Thanks for watching! Let us know if there are any other topics you want us to cover in the comments below.

Don’t ever put any of your personal information in the comments! This makes you an easy target for scammers, some of whom may attempt to pretend that they are me.

Disclaimer: This video is for information and entertainment only. None of the contents should be considered legal, accounting, or other professional advice. You should reach out to a qualified professional before making your own financial decisions.

I try to respond to comments and questions, but I will never provide personal advice through YouTube….(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERTING IRA TO GOLD: Gold IRA Account

CONVERTING IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

What is a Solo 401(k)?

A Solo 401(k) is a retirement savings plan designed for self-employed individuals or business owners with no employees, other than a spouse. It works much like a traditional 401(k) plan offered by companies to their employees, but with some key differences and advantages for those who are self-employed.

How does it work?

With a Solo 401(k), you can make contributions as both the employer and the employee. As the employee, you can make elective deferrals of up to $19,500 in 2021 (or $26,000 if you are age 50 or older). As the employer, you can make additional contributions of up to 25% of your net self-employment income, up to a total contribution limit of $58,000 in 2021 (or $64,500 if you are age 50 or older).

One of the key benefits of a Solo 401(k) is that it allows you to contribute more than you would be able to with other types of retirement plans, such as a SEP IRA or a SIMPLE IRA.

How to maximize a Solo 401(k)’s potential

Here are some tips to help you make the most of your Solo 401(k) and maximize its potential:

1. Contribute regularly: One of the most important ways to maximize the potential of your Solo 401(k) is to make regular contributions. Set up automatic contributions from your bank account so you can consistently save for retirement.

2. Take advantage of catch-up contributions: If you are age 50 or older, you can make additional catch-up contributions to your Solo 401(k) to boost your retirement savings.

3. Invest wisely: Choose a diversified mix of investments that align with your risk tolerance and time horizon. Consider seeking the advice of a financial advisor to help you make informed investment decisions.

4. Review and adjust your investments regularly: Periodically review your investment portfolio and make adjustments as needed to ensure that it continues to align with your retirement goals.

5. Keep track of your contributions and retirement savings: Keep detailed records of your Solo 401(k) contributions and monitor your retirement savings progress regularly. This will help you stay on track to meet your retirement goals.

In conclusion, a Solo 401(k) can be a powerful retirement savings tool for self-employed individuals and business owners. By making regular contributions, taking advantage of catch-up contributions, investing wisely, reviewing and adjusting your investments regularly, and keeping track of your contributions and retirement savings, you can maximize the potential of your Solo 401(k) and ensure a secure financial future in retirement.