Solo 401k

Arif · 06-26-2005, 06:48 AM

We are in the process of formalizing our side business. It will our sole source of income next year. I plan to set up a solo 401k for me and my wife (everyone else will be contracted out). Is there a company that I can set up a 401k in that will allow us to invest in individual stocks like an IRA can? Also, has anyone heard any more news on the solo 401k? Thanks.

kat · 06-26-2005, 07:09 AM

I'd suggest checking out Fidelity Investments. I know they offer a solo 401(k) plan. It's worth a call to see if they offer what you want. I'll be doing it soon too. I found some basic info at their website and asked them to mail some. When I began looking earlier this year, someone also recommended T Rowe Price, but I didn't follow up since I already had another account at Fidelity. Nearly all my assets are at Vanguard, but they don't offer the solo 401(k).

kate

06-26-2005, 09:05 AM

When I looked into that I found that a SEP-IRA was much much simpler, and still let me contribute a lot. Just like an IRA and up to 15% of income (max $25,500). You can convert that to Roth also.

Arif · 06-26-2005, 09:16 AM

Thanks kat,
They do allow you to invest in individual stocks which is what I am interested in.

Trombone,
Everything I have read thus far says that you can contribute a lot more to a solo 401k than a SEP-IRA.

retire@40 · 06-26-2005, 12:26 PM

Quote:

Originally Posted by TromboneAl

When I looked into that I found that a SEP-IRA was much much simpler, and still let me contribute a lot.* Just like an IRA and up to 15% of income (max $25,500).

Isn't the max higher than 15% for a SEP-IRA?

vic · 06-26-2005, 12:33 PM

SEP limit is 25% with a max of something like 40K

There is a solo 401K company that offers all Vanguard stuff for a 0.5% yearly fee, can't remember the name no more. Solo 401K is much more of a hassle to set up and maintain with the IRS regulations than SEP

brewer12345 · 06-27-2005, 05:46 AM

We set up a solo 401k with Fido last year for my wife's business. Easy to set up, easy to maintain, and Fido didn't charge us any fees to do it. You can buy and sell anything you like within the 401k at Fido (subject to retirement account restrictions).

06-26-2005, 06:48 AM	#1
Arif Full time employment: Posting here. Join Date: Jun 2005 Posts: 661	Solo 401k We are in the process of formalizing our side business. It will our sole source of income next year. I plan to set up a solo 401k for me and my wife (everyone else will be contracted out). Is there a company that I can set up a 401k in that will allow us to invest in individual stocks like an IRA can? Also, has anyone heard any more news on the solo 401k? Thanks. __________________ You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes.

06-26-2005, 07:09 AM	#2
kat Recycles dryer sheets Join Date: Apr 2005 Posts: 459	Re: Solo 401k I'd suggest checking out Fidelity Investments. I know they offer a solo 401(k) plan. It's worth a call to see if they offer what you want. I'll be doing it soon too. I found some basic info at their website and asked them to mail some. When I began looking earlier this year, someone also recommended T Rowe Price, but I didn't follow up since I already had another account at Fidelity. Nearly all my assets are at Vanguard, but they don't offer the solo 401(k). kate

06-26-2005, 09:05 AM	#3
TromboneAl Guest Posts: n/a	Re: Solo 401k When I looked into that I found that a SEP-IRA was much much simpler, and still let me contribute a lot. Just like an IRA and up to 15% of income (max $25,500). You can convert that to Roth also.

06-26-2005, 09:16 AM	#4
Arif Full time employment: Posting here. Join Date: Jun 2005 Posts: 661	Re: Solo 401k Thanks kat, They do allow you to invest in individual stocks which is what I am interested in. Trombone, Everything I have read thus far says that you can contribute a lot more to a solo 401k than a SEP-IRA. __________________ You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes.

06-26-2005, 12:33 PM	#6
vic Recycles dryer sheets Join Date: Oct 2003 Posts: 175	Re: Solo 401k SEP limit is 25% with a max of something like 40K There is a solo 401K company that offers all Vanguard stuff for a 0.5% yearly fee, can't remember the name no more. Solo 401K is much more of a hassle to set up and maintain with the IRS regulations than SEP

06-27-2005, 05:46 AM	#7
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,146	Re: Solo 401k We set up a solo 401k with Fido last year for my wife's business. Easy to set up, easy to maintain, and Fido didn't charge us any fees to do it. You can buy and sell anything you like within the 401k at Fido (subject to retirement account restrictions). __________________ "When caught between two evils I generally pick the one I haven't tried before." - Mae West "If dogs weren't meant to eat dental floss out of the garbage, why do they make it mint-flavored?"

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