• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

It’s easy for a plan to fly solo

by on
in Small Business Tax

Q. I’m starting up a one-person LLC. Can I use a solo 401(k) for this business? H.B.P., New York

A. 
Yes. The solo 401(k) plan may be used for virtually any form of wholly owned business such as a C corporation, S corporation, limited liability company (LLC) or sole proprietorship.

Note that the limit for elective deferrals under a solo 401(k) are increasing from $15,500 for 2008 to $16,500 for 2009 ($20,500 to $22,000 for those age 50 or older). Plus, the overall dollar cap on contributions, including employer-matching contributions, is increasing from $46,000 for 2008 to $49,000 for 2009 (higher if you are age 50 or older).

Tip: If you hire an employee for your LLC, he or she will have to be covered under the 401(k) plan.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/26515/its-easy-for-a-plan-to-fly-solo "

Related Articles...

    No matches

Leave a Comment