Tag #Roth Solo 401K

What are the key advantages of a Roth Solo 401(k) plan compared to other retirement savings options available to self-employed individuals?

The Roth Solo 401(k) retirement plan, designed for self-employed individuals and business owners without full-time employees (except spouses), allows for both employee and employer contributions, maximizing savings potential. For 2025, employee contributions can reach $31,000 ($23,500 + $7,500 catch-up for those 50+), while employer contributions are capped at 25% of eligible compensation, with a total combined limit of $70,000.