Self Directed Solo 401k -Who Can Benefit the Most?

There are many different retirement accounts for many different types of people. Not all of them will mesh with each other. For some people, particularly the employed, a company-directed 401(k) plan is great because the employer offers 401(k) matching. For others, like entrepreneurs who have to provide their own benefits, a Self Directed Solo 401k is the way to go.

That’s right, a Self Directed Solo 401k. It might sound like something in which only savvy business-types invest. But you don’t have to be a wealthy Wall Street trader to maximize your portfolio by utilizing a Self Directed Solo 401k. In fact, you might just find that in reading this article, that you might just fit the ideal type of candidate for a Self Directed Solo 401k. Let’s find out if that’s true or not by taking a look at who stands to benefit from these unique 401(k) plans:

Self Directed Solo 401k Requirements

First, let’s be clear: there are two main requirements that you’ll have to fulfill in order to use this type of retirement account.

  • You are the sole proprietor of a business, or you own a business in which there are no employees other than a spouse/partner.
  • You have received taxable “compensation” for this business along the course of the year.

The “solo” in this case does indeed refer to someone who has to provide their own 401(k) for themselves. But fortunately, these Solo 401(k) plans have lots of advantages that you can use. Now all that needs to be seen is whether you’re the type of person who can benefit:

  • Investors who want to get aggressive about retirement. The high contribution limits of this retirement account make it ideal for anyone who wants to retire early. And for anyone who’s over 50 and still wants to build a suitable nest egg, these solo plans can be great because they allow you to “make up” a considerable amount of time that you might have missed when younger. No matter what your age, there’s plenty you can do to maximize your retirement investments and build your nest egg.
  • Investors who want more than just stocks and mutual funds. Sure, the traditional advice tends to work over time. But who said you have to only listen to what the traditional advice tells you? If you truly want to diversify your nest egg so you can count on a better retirement, then you should be willing to try different types of investments—and a self-directed IRA is just the way to accomplish that.
  • Investors who want to create their own benefits. As an entrepreneur, you’re used to creating things from nothing. You know what it means to build up your dream and to make something happen. The Solo 401(k) plan is a great way to provide yourself with the kind of benefit that you would only otherwise realize as an employee. Sure, there are differences (and you can’t get employer matching when you’re self-employed), but it often feels great to give yourself a legitimate advantage through a Solo 401(k).

If any of the above sounds like you, then you should consider the Self Directed Solo 401k as an option. Not only do these retirement accounts give you plenty of flexibility, but they allow you to have a considerable amount of investing power. And if you’re still intimidated by the phrase “Self Directed Solo 401k” then continue reading here at You’ll learn all about Self-Directed IRAs and what they can do to enhance your portfolio. When you’re ready, simply give us a ring at 828-257-4949 and ask questions.

Rate this post