Hello. I have recently started my own business as an S Corp and am wondering if you would recommend opening a 401K account for myself and my husband. We currently have IRA accounts but I know we could save more in a 401K account. However, I know 401k’s have more fees as well. Just wondering your advice for a small entrepreneur who wants to tuck away as much cash as we can with the best tax benefits and growth potential. Thanks!
I think Solo 401(k)s are less typical. Usually only big companies have a full 401(k) plan. Self employed people often look to the SEP IRA as the next place to do tax advantaged savings. Those can be pretty simple to open with a brokerage, assuming your business income qualifies you.
For this type of thing, I would recommend talking to a CPA to make sure you’re following the rules correctly
I know 401(k)'s have been less desirable in the past with the additional admin they take. I guess I was wondering with new tech such as Vestwell if that was changing. Vestwell makes it super easy and takes care of all of the admin for a monthly fee which is how I was looking to set it up. But the fee is $100 per month and over time that’s a chunk out of actual earnings. Verbally processing here.
Thanks for your time!