Solo 401k and your WealthCare
Solo 401k’s are the best kept secret I am assuming because the gov’t does not want a well informed population? I have never seen a government training webinar on the topic.
Everyone should have an LLC or some form of entity to have a part or full time business. Whether you are on ebay selling garage findings or detailing cars or mowing lawns, it should all be done using an entity and running a solo 401k with that entity. The tax benefits are huge and it is a fantastic form of forced savings.
If you are married, you can pack 65k of your income into the plan tax deferred or tax free if you open a Roth and pay tax upfront on the contribution, then any growth on that contribution will be tax free. Amazing! Why is no one shouting this from the rooftops?
This money can be used to invest in just about anything you want and it is much more forgiving than a self-directed IRA. You can even borrow from your solo and pay yourself back with interest and use that money for anything you want. Go to Hawaii?….Yup! Take training courses?…Yup!