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Supercharge Your Retirement Savings with a Solo 401(k)

If you are self-employed a solo-401(k) provides a unique way to save for retirement and reduce your income tax liability. But not all solo-401ks are equal.

Our plans allow for a mega-backdoor Roth IRA contribution, which can yield an extra $20,000 or more in annual retirement savings.

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Why Choose a Solo 401k?

A Solo 401(k) offers several compelling benefits. Higher contribution limits compared to traditional IRAs, the ability to make both employer and employee contributions, potential tax deductions on contributions, and flexibility in investment choices make them a popular tool to build wealth and financial stability for the future.

If you are a consultant, business owner, or self-employed professional, a solo 401(k) checks all the boxes - it helps reduce taxes, save for retirement and provides funding flexibility.

But to maximize your investment you need some advice to get started. 

How we can help

  • Lowering your tax liability. We help determine reasonable compensation from a business. By making an S-corp. election many business owners can pay themselves a reasonable salary and receive additional income as “pass through” income. This technique can save thousands of dollars in tax each year.
  • Maximizing retirement savings. We can devise a retirement savings plan that allows for maximizing contributions and take advantage of the mega backdoor Roth rules. If done properly your savings plan allows you (and perhaps your spouse) to save up to $76,500 in 2024 towards retirement.

  • Roth or Traditional deferrals. Should your 401-k deferrals be made as Roth or Traditional or some combination of both? Our tax planning helps make the right election for you.

  • Leverage profit-sharing. We usually recommend incorporating a profit-sharing feature into solo 401-k plans. However, how much (if any) should be allocated to profit-sharing each year is based on your unique situation and can vary year to year.

Don’t let confusion or uncertainty around solo- 401(k)s keep you from achieving the retirement you deserve. Put our expertise to work for you today!

Working for yourself doesn't mean you're on your own. We can help you open a retirement account to secure your future. 

Don't let uncertainty cast a shadow over your retirement. Schedule a meeting with us today, and let's craft a roadmap to your brighter tomorrow. Your future self will thank you for taking this pivotal step today.

Get Your Free Retirement Assessment

Ark Royal Wealth Management always serves you in a fiduciary capacity. We are never compensated by commissions, which guarantees that you get independent and objective advice.  We take  pride in our membership with both the Certified Financial Planner (CFP) and the National Association of Personal Financial Advisors (NAPFA), as these affiliations represent our unwavering commitment to professionalism, ethics, and excellence in financial planning.