Top Solo 401(k) Plans for Professionals

It matters who you choose as your solo 401(k) provider. The best solo 401(k) plans for professionals:

• Offer full flexibility for investments
  With Ubiquity, you can choose any broker you like or function as your own broker using platforms like e*Trade, Ameritrade, or Fidelity. While we are happy to recommend brokers, you’re not pigeonholed into where and how you invest your money. Some 401(k) plan providers set you up with a preferred broker who may limit the types of investment choices you have or charge high fees.
• Are affordable
  Solo 401(k)s are generally the most affordable type of 401(k) plan if you know where to look. Ubiquity Solo 401(k)s provide full administration for a price that fits your budget, with no AUM fees or hidden charges. Assets Under Management fees can feel like a penalty, as you’re charged a percentage of your balance. A flat, transparent monthly rate offers the lowest cost.
• Full service
  When you partner with Ubiquity, you know we’ve got your back if you have any questions about your account, wish to take out a loan, need to file Form 5500 once the account balance reaches $250,000, or you just need someone to keep your contributions and records organized.

The best Solo 401(k)s are quick and easy to set up, with ample online resources for plan participants to maximize their savings. Ubiquity’s website provides the latest investment news.

Since 1999, Ubiquity has offered the best solo 401(k) plans for professionals in a variety of industries. We understand how important it is for freelancers, consultants, entrepreneurs, and solo professionals to save as much money for retirement as possible. That’s why we focus on top-notch customer service at the lowest possible cost.

A Tech startup CEO makes an average of $142,000. With that kind of salary, you likely want to save a substantial amount for retirement, which means the $6,000 to $7,000 you can save annually with a traditional IRA probably isn’t going to suffice.

A Solo 401(k) allows you to save as both employee and employer, so you can set aside up to $20,500 as the employee, plus an additional 25% ($35,500) as a C-Corp or S-Corp executive in profit-sharing contribution as the employer. Each year, you’ll be able to save $56,000 toward your retirement.

If you earn more than $142,000, the ceiling for Solo 401(k) investing in 2022 is $61,000–and if you’re over 50, you can save $6,500 on top of that in catch-up contributions. If you’re married and your spouse works for the business, your household can double your contribution to retirement savings, so your golden years will be especially secure.

As a self-employed consultant, you’re used to calling the shots.

You don’t want to pay a fee to ask investment permission from a custodian who could potentially deny your request for fear of liability if the investment doesn’t pan out.

Even on low-risk investments, you don’t want anyone telling you to wait 14 days before you can spend YOUR money on an investment.

With a Solo 401(k), you enjoy full checkbook control, which means making an investment is as easy as using your debit card or writing a check from your retirement plan account – whenever you choose.

Mortgage brokers and real estate agents often like to invest in what they know best – real estate properties. While there are rules on how you invest retirement money in real estate and raw land, you do have that option when you choose a solo 401(k) plan for real estate and mortgage brokers, particularly if you’re interested in renting out the property to a non-relative. Real estate investments are nice because potential gains are extremely high.

Life as an independent contractor is exciting, flexible, and rewarding. However, some years are better than others. It’s great to know that you have full power to choose how much – or how little – you contribute to your 401(k) each year.

If your finances have taken a downturn due to an economic crisis, global pandemic, business interruption, or illness in the family, you have the freedom to borrow from a Solo 401(k) by taking out a loan for any reason whatsoever. You are allowed to take out up to 50% of your account balance to a maximum of $50,000.

You’ll have five years to pay yourself back at a prime loan rate without any penalties or additional fees. If it takes you more than five years, you’ll be taxed on the full amount as if it were a distribution, and you will be charged an additional 10% early distribution penalty if you’re under 59.5. Perhaps the worst penalty of all is the lack of gains and compounding interest during the repayment period. It’s not a decision to take lightly, but if you’re in a pinch, your independent contractor Solo 401(k) can be a valuable lifeline.

Savvy brokers and other professionals in the finance sector love Solo 401(k)s because – unlike some employer-sponsored 401(k) plans, which may limit your choices to traditional stocks, bonds, CDs, and mutual funds – you can invest in a full and diverse portfolio of Solo 401(k) investment options, including:

• Real estate
• Private businesses
• Tax liens
• Foreign currencies
• Loans and notes
• Precious metals

With Solo 401(k)s for financial advisors, you can invest in all the usual stocks, bonds, CDs, and mutual funds as well, but certain transactions are not allowed. Investments in alcoholic beverages, antiques, artwork, certain coins and metals, gems, musical instruments, and rugs are NOT allowed under Solo 401(k) retirement fund rules.

It doesn’t take a shrewd lawyer or legal professional to appreciate how easy legal solo 401(k) plans are to administer. Until your balance reaches $250,000, you don’t need to fill out any paperwork with the IRS (like Form 5500), and you won’t have to worry about annual nondiscrimination testing or plan auditing.

Use Ubiquity’s simple Solo 401(k) Calculator to help you determine how much you can contribute, how much you’ll save over time, and what the impact might be of saving more or less. As your low-cost third-party 401(k) administrator, we track all rollovers, contributions, distributions, participant loans, investment gains, and losses.

Did you know the cost of operating your healthcare solo 401(k) plan can be deducted as business expenses? Solo 401(k) contributions are tax-deductible. If your healthcare practice is a “pass-through” partnership, LLC, or sole proprietorship, you submit employer and employee contributions on Schedule 1, line 15 of your 1040 form. The Solo 401(k) contribution becomes part of your adjusted income, subtracted out of your taxable income.

If your healthcare practice is registered as a corporation, business contributions do not pass through your personal income tax return. If you opt for a Roth Solo 401(k), these contributions won’t be listed on your personal or business tax returns, but you will reap the benefits later in retirement when you pay no tax on the distributions.

Contact Ubiquity to gain access to top solo 401(k) plans for professionals today. It’s quick, easy, and affordable to get started.