• Question
  • I have my own LLC.w/2 imploye what is the best 401k for me?

    Asked by a 53 year old woman from Brooklyn, NY on 9/1/2012

    I have my own LLC.w/2 imploye what is the best 401k for me?

  • Categories: Self Employment, Work and Retirement


  • Editorial 


    San Francisco, CA

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  • Hi,

    If your two employees are part time then you may be eligible for a Solo 401K which is a pretty efficient vehicle for self employed business owners. I know people who have used this and it's nice since they can contribute up to ~ $50,000 per year, an amount they also defer taxes on.

    There are a number different kinds of plans that could be a fit depending on your company and your goals, including options such as:
    - Solo (Individual) 401K
    - SEP IRA
    - Defined Benefit plan

    A big question is which ERISA rules apply to your situation since you have employees: http://www.dol.gov/compliance/laws/comp-erisa.htm

    There's some content here specifically for small business owners: http://www.newretirement.com/Services/Small_Business_Owner.aspx

    You may want to talk to your tax advisor or accountant or a financial advisor about different options - you can find financial advisor options here:


    Hope this is helpful.

  • Login to rate this answer:   Answered on 9/5/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.