I am the employer and employee - solo 401K tax deductions #taxstrategy

Lydia PatelFeb 20, 20240m 34s735 viewsScore 65
Pricing & Profitability
advanced
Solo 401k
tax deductions
self-employment tax
small business owner
retirement planning
M

Summary

AI-generated

As a solo entrepreneur, you can act as both employer and employee to leverage a Solo 401(k) for tax deductions. The employer can provide an employee match up to 25% of net profits, offering a powerful write-off, especially for profitable businesses.

Key insights

  • The employer portion of a Solo 401(k) contribution can include an employee match, which is a powerful write-off for the business.

Mistakes to avoid

  • Relying solely on employee contributions without considering the employer match can limit the total tax-deductible amount available through a Solo 401(k).

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial