What is a self-employed 401(k) plan? Are you self-employed? Here's what you need to know about solo 401(k)s and how to open one. A self-employed 401(k) plan — also called a one-participant 401(k), individual 401(k) or solo 401(k) — is a type of retirement account for...
What is a 401(k) plan and who is eligible? A 401(k) plan is an investment account offered by your employer that allows you to save for retirement. If your company offers a 401(k) plan, it may have certain eligibility requirements. While these requirements vary by company, some employees...
Another major benefit of a 401(k) plan is that it offers higher annual contribution limits than individual retirement accounts (IRAs). In 2025, the 401(k) plan maxes out at $31,000 to $34,750 for those 50 and older. Meanwhile, an IRA tops out at $7,000, or $8,000 annually for...
What is a 401(k)? Named for the tax code section that created it, a 401(k) is an employer-sponsored retirement savings plan with special tax benefits. (The exact tax advantages depend on which kind of 401(k) contributions you make—more on that later.) Employers typically offer 401(k...
Is a solo 401k worth it? The flexibility around solo 401(k) contributions, investment options, and relatively low management requirements makes the plan an attractive alternative for small business owners or sole proprietors who want to save for retirement proactively. ...
What Is the Difference Between a 401(k) and a 403(b) Retirement Plan? You may be wondering about the difference between these two types of retirement accounts. Typically, you will only be able to choose from one of them. If you work in the private sector, you will usually only be abl...
Can I Have a SIMPLE 401k and a Traditional IRA? Yes, you can maintain and contribute to an individual retirement account (IRA) while also having and contributing to an employer-sponsored SIMPLE 401(k) plan. The Bottom Line Helping your employees save for retirement is a great way to keep...
Narrator: Some 401(k) providers charge additional administrative fees on top of the cost of individual investments. These fees are not always obvious, so check with your plan administrator or use an online 401(k) fee analyzer. If you're unhappy with the fees you're paying, you can consider...
A 401K is an employer-sponsored retirement savings plan that allows individuals to contribute a portion of their salary, on a pre-tax basis, to invest in a variety of financial instruments such as stocks, bonds, and mutual funds. The goal is to build a nest egg for retirement, which is ...
With a 401k plan, employees can dedicate a percentage of their pre-tax salary to invest in a range of vehicles like stocks, bond, and mutual funds.Who sponsors a 401k plan? A sponsor is a company, employer, or professional group or union that sets up a 401(k) as a retirement plan ...