Hey Marketer, have a (Crypto) 401(k)?

It May Be What YOU Need!

Have you procrastinated about setting up a tax-advantaged retirement plan for your small business? If the answer is yes, you are not alone. Many self employed small business owners are rushing to do the same. With the fact that 401(k) assets can now be invested in cryptocurrency they are hot right now.

For owners of profitable one-person business operations, a relatively new retirement plan alternative is the solo 401(k). They provide the potential for retirement growth and tax mitigation.

The main solo 401(k) advantage is potentially much larger annual deductible contributions to the owner’s account — that is, your account. Good!

Solo 401(k) Account Contributions

With a solo 401(k), annual deductible contributions to the business owner’s account can be composed of two different parts.

First Part: Elective Deferral Contributions

For 2021, you can contribute to your solo 401(k) account up to $19,500 of

• your corporate salary if you are employed by your own C or S corporation, or
• your net self-employment income if you operate as a sole proprietor or as a single-member LLC that’s treated as a sole proprietorship for tax purposes.

The contribution limit is $26,000 if you will be 50 or older as of December 31, 2021. The $26,000 figure includes an extra $6,500 catch-up contribution…