Today’s article is by Paul Kim of Carry Money, explaining the advantages of a solo 401(k), annual contribution limits, and how the plan works. Because many readers are self-employed, this topic is especially relevant—saving for retirement matters. Enjoy Paul’s insights below.
A solo 401(k) is one of the most effective retirement and wealth-building vehicles for self-employed individuals. It offers the highest contribution limits of any retirement plan, tax-advantaged compounding, broad investment options across asset classes, and other powerful features.
I’ve worked for myself for most of my professional life—about nine years. In my early 20s I learned how to make money online, built blogs, studied SEO, and have since made a strong living growing content businesses.
Recently I accepted a full-time position at Carry Money. Many people asked why I would leave solopreneurship to join a company.
Two reasons:
First, Carry Money’s founder, Ankur Nagpal, previously built Teachable into a $250 million business in a short time. Working with him and the talented founding team is an incredible opportunity. After nearly a decade of working alone, I wanted to be part of a team working toward a bigger goal.
Second, Carry Money is building something I’ve wanted for a long time: a streamlined, intuitive solo 401(k) solution for self-employed people. I knew solo 401(k)s existed, but I had dismissed them before because setting up and maintaining a self-directed plan felt complex and costly. Major banks offered basic, limited plans, and other third-party providers weren’t compelling or trustworthy with retirement savings.
At Carry Money we launched a self-directed solo 401(k) with checkbook control and redesigned the signup flow and user experience to make it intuitive and accessible.
If you run a business, freelance, blog, or create content, here are several reasons to consider a solo 401(k). Even if retirement isn’t your immediate priority, the tax advantages alone can save you significant money each year.
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