What Is a Self-Directed 401k?

Will you have enough money in retirement? The Bureau of Labor Statistics found that only 43% of United States workers participate in a retirement savings plan.

This survey was actually specific to plans accessed through an employer. But what do you do if you are or you are self-employed? If you own a business with just yourself (or you and a spouse), a Solo 401k plan may be an even better solution for you!

401Ks are similar to IRA plans. However, IRA plans are set up on an individual basis and not set-up by an employer. A 401K is set up by an employer.

401k vs. IRA: What’s the Difference?

A Solo 401k is also known as a self-employed 401k. Full-time freelancers and self-employed individuals are not able to take advantage of a permanent employer retirement plan, so instead that can opt for a solo 401k.

Getting a loan What is a Solo 401k?with a bad credit score

All Solo 401k’s by default are also “Self Directed”. That means that you have full control over what you invest in. Most employer-enabled 401k plans only have a small selection of investment options for workers to choose from.

What Is a Self-Directed 401k?

Traditional vs Roth

There is one key difference between traditional and Roth IRAs. With traditional IRA plans, you invest funds into the plan pre-tax.

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