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Solo 401(k) plans allow self-employed business owners to increase their retirement savings contributions versus an IRA. Additionally, Solo 401(k) plans offer tax advantages that may result in a lower tax bracket.
A solo 401(k) (also known as an individual 401k) is a retirement plan for self-employed business owners and their spouses. This type of retirement plan allows you to contribute to the plan as both the employer and employee, providing you with the ability to maximize contributions and business deductions, while lowering your personal taxes.