If you’re considering a Solo 401k, you’ve probably read up on the benefits of such a plan for single-member businesses.
You may already know about the massive contribution limits, loan options, and different taxation strategies that make the Solo 401k of the best options for the self-employed.
But you may not know how to look for a great Solo 401k provider who will ensure that your investments are safe and are giving you the best chance of retiring comfortably, when you’re ready to do so.
In this article, we will review the best qualities to look for in a Solo 401k provider.
Things to Look for In a Solo 401k Provider
When searching through the various Solo 401k providers available for your business, you might be overwhelmed by all of the different options each provider claims to offer.
However, the following considerations should be at the forefront of your mind when you’re considering partnering with a plan provider:
- How much do the plans cost? Naturally, plan providers have to have a way to make money. However, some providers will charge exorbitant fees for managing your plan and may even charge a rate for trading. If you can, you’ll want to select a plan provider that doesn’t impose any extra fees and who charges you only a flat price for using their service. It may seem like a small issue, but over the course of many years, these little charges can add up to thousands of dollars that should be helping your retirement fund grow.
- Is it easy to make changes? As you and your company grow and change over the years, you may need to make modifications to your Solo 401k plan. For this reason, your plan should offer easy, intuitive options for logging onto the system and making whatever changes you may need.
- Is there assistance available? You’re not an expert in the retirement field, so undoubtedly, you’ll have questions from time to time. When these queries pop up, you should be able to access friendly, helpful customer service representatives who can answer your questions and help you navigate the tricky world of retirement planning. Additionally, this customer service should be available through multiple methods such as phone, email, chat, and/or other methods of communication to best fit your needs.
- Are the available plans flexible? You want to make sure that you work with a plan provider who allows you to choose from multiple options, not one with a very rigid structure that only affords a few basic choices. For example, your plan provider should enable you to choose between making Roth contributions or Traditional contributions in order to set up the best retirement plan for your needs. Additionally, you should be able to choose from a long list of investment choices. The last thing you should have to be concerned about is being stuck in a plan that doesn’t allow you to pivot if you need to make changes.
Solo 401k plans are an excellent choice for single-member businesses, but you need to be sure to pick the right provider. When you’re deciding on a plan provider, be sure to do your due diligence and select one who will help you retire most comfortably!