Weak economy strengthens the incentive for a Solo 401k

February 10, 2009 By 1 Comment

This is quite a simple concept so this post will be very brief.

  • Our weak economy has brought very high inflation: as high as 13% over the past year.
  • Future dollars are worth much less than dollars today.
  • With a Solo 401k you can make tax-deductible contributions to your retirement plan in today’s dollars and pay taxes later in less valuable dollars.
  • Successful entrepreneurs and self employed individuals can contribute $49,000 per year or more to their Solo 401k in 2009.

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Filed Under: Blog, Solo 401k Investment Options & Ideas Tagged With: 401k, dollar, economy, inflation, invest, investing, ira, meltdown, profit, real estate, self directed, solo, solo 401k, wealth

Comments

  1. cory marley says:
    August 2, 2010 at 4:30 pm

    if i rollover roth 401k funds into a solo 401k can i deduct the transaction since i used after tax dollars to invest in the roth? if so, can i spread the tax benefit over three years or must i take it during the tax year that it was rolled over? thanks.

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