Join Early Retirement Today
Thread Tools Search this Thread Display Modes
401K Question
Old 10-19-2018, 07:01 AM   #1
Recycles dryer sheets
Join Date: Feb 2011
Location: Nottingham
Posts: 158
401K Question

Good Morning -

One of our son's is somewhat unconventional, bless his heart. Unlike my wife and I who were 9 to 5, corporate, type workers, he is more of an entrepreneur. He is self supporting but because of his world wide adventures he does not have the benefit of a corporate 401K offering. And for me and my wife, the 401K was the only reason we could retire early.

My question is can he create his own 401k or similar retirement fund? He does max out his Roth IRA but in the long term, he needs to save at a higher rate to retire early.

Appreciate any of your ideas how he can save more for his retirement.

And just in case, we're playing Mega Million tonight too.


kannon is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-19-2018, 07:30 AM   #2
Thinks s/he gets paid by the post
Onward's Avatar
Join Date: Jul 2009
Posts: 1,802
Yes, he can open a Solo 401k, also called an "Individual 401k", at a discount brokerage like Fidelity or Vanguard.

And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 10-19-2018, 07:43 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
Join Date: Dec 2008
Posts: 5,368
"World wide adventures" may be decisive, in that it is not known how income flows to him.

For example, his income could be self-employment, paid by foreign or US businesses on 1099 basis, and all handled on his US 1040 form. In this case, he would have self-employment income to support a Solo 401k.

OTH, he may be taxed on the income by foreign businesses, and he gets credit for foreign taxes paid when he completes his US 1040. In this case, you should examine closer.
target2019 is offline   Reply With Quote
Old 10-19-2018, 07:55 AM   #4
Full time employment: Posting here.
Join Date: Jul 2013
Posts: 737
Obviously, he could also invest in a taxable account.
mrfeh is offline   Reply With Quote
Old 10-19-2018, 08:00 AM   #5
Recycles dryer sheets
Join Date: Feb 2011
Location: Nottingham
Posts: 158
of course about the taxable accounts.

His income is mainly US businesses that are doing startups around the world in fresh water production, countries like India and Africa where there are significant problems with water pollution from arsenic and other compounds. he really does nice work but needs to remember that retirement funding is important too.

So I will start investigating Solo 401Ks at Vanguard. He has his Roth IRA there.
kannon is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax question (401k vs Roth 401k vs non-retirement accounts) rollergrrl Young Dreamers 7 11-23-2017 10:27 PM
New Company has no 401K - what to do with old 401k? farmboy42 Young Dreamers 9 08-22-2007 09:19 PM
Roth 401k vs Traditional 401k keldon FIRE and Money 3 01-08-2007 01:25 PM
Trad 401k or Roth 401k for High Earners Linney Young Dreamers 7 01-01-2007 08:24 PM
Traditional 401k or Roth 401k HatePayingTaxes Young Dreamers 4 12-30-2006 10:59 PM

» Quick Links

All times are GMT -6. The time now is 09:54 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.