Solo Owners, Secure Your Bag for Retirement!
With gig work and side hustles booming across the U.S., independent contractors and LLC bosses are stacking cash—but are you planning for the long game? Retirement might seem far off, but in a country where you can launch a solo biz in hours for a few hundred bucks, setting up a retirement account is a no-brainer. Let’s dive into the best options for solo LLC owners: Solo 401(k) vs. SEP IRA.
Why Plan Now?
The hustle’s real, but so is the need to save. A Solo 401(k) or SEP IRA lets you stash serious cash for retirement
while cutting your taxes. Both are built for self-employed folks like you—no employees required (spouse excluded). Here’s the lowdown.
Solo 401(k): The Heavy Hitter
This is the gold standard for LLC owners who wanna max out savings.
Contribution Limits (2024):
Employee side: Throw in up to $23,000 ($30,500 if 50+).
Employer side: Add up to 25% of your net biz earnings**.
Total cap: $69,000, or $76,500 if you’re 50+.
Where to Open One?
Go with online brokers for max flexibility and low costs:
Fidelity: $0 fees, Traditional or Roth options. Trade stocks, bonds, ETFs, mutual funds.
Charles Schwab: Cheap trades, clean platform. Great for stock/ETF fans.
Vanguard: Low-cost funds, but $20/fund fee unless you got $50k+ in assets. Only Vanguard products.
E-TRADE: Versatile, plus you can take loans from your account.
