If you have your own company, what do you put away in retirement?

[Anonymous]

DH is starting his own company. His previous employers always matched 401k contributions. Now that he no longer has that benefit, what is the best way to continue to personally invest in retirement?

[Anonymous]

His company is his retirement, assuming it's the kind he can sell later (personal services businesses this doesn't work so well).

[Anonymous]

Some options here:

https://investor.vanguard.com/accounts-plans/small-business-retirement-plans

[Anonymous]

Really depends on how much he wants to put away and how many other employees he has.

[Anonymous]

As much as you possibly can. Also have an enormous liquid reserve if things go south fast.

[Anonymous]

401k match wasn't a benefit. It was a hindrance. Regular investment account may be a better fit depending how much money you have and your combined future RMD.

[Anonymous]

Spouse does own solo 401k as sole owner of company. We put aside a shit ton while still staying within tax bracket.

[Anonymous]

Mega backdoor Roth allows you to put away up to $70,000 per year. I personally only put $45,000 here because I like having funds outside of retirement accounts as well.

[Anonymous]

A solo 401(k)

[Anonymous]

I own a small company (less than 100 people). We use a simple IRA through fidelity for retirement.

[Anonymous]

I have a solo 401k with fidelity. You can save $23K as an employee, plus you can match as an employer thru when you file that year’s taxes. Overall limit is about $70K, but it depends on your income.

[Anonymous]

Anonymous wrote:Mega backdoor Roth allows you to put away up to $70,000 per year. I personally only put $45,000 here because I like having funds outside of retirement accounts as well.

I started this through mysolo401k (recommended through white coat investor) last year. It was way more work than they had advertised and I found their support lacking. I went through fidelity and previously my 401k was through etrade.

Hoping that now its all set up it'll be a lot easier. Putting the large sum in a Roth was my main goal

[Anonymous]

When you say DH is starting his own company, do you mean an actual company with office space, employees and mass selling a product or service. Or do you mean that he is setting up an LLC and selling his services as a contractor with him either being the sole employee or possibly having one employee that is his assistant.

They are both technically companies but the answer is completely different.

[Anonymous]

If he is the only employee of his company then we can contribute 23k towards his 401k as well as up to 70k ER contribution. He can also contribute towards his defined benefit pension plan, I don't know how it works but DH's accountant+lawyer have set it up, DH's yearly revenue is 900k and he contributes 270k towards this pension account. DH saves 300k in retirement. Hope this helps.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Mega backdoor Roth allows you to put away up to $70,000 per year. I personally only put $45,000 here because I like having funds outside of retirement accounts as well.

I started this through mysolo401k (recommended through white coat investor) last year. It was way more work than they had advertised and I found their support lacking. I went through fidelity and previously my 401k was through etrade.

Hoping that now its all set up it'll be a lot easier. Putting the large sum in a Roth was my main goal

There’s a new company called Carry that I can’t recommend highly enough. I read a lot about how cumbersome this process could be, but frankly, Carry made it astonishingly easy.