Entrepreneur.
Entrepreneurship is a way of life. No one appreciates the beauty of letting your money work for you more than an entrepreneur. Creating that platform for yourself fuels your efforts while you burn the candle at both ends. When you can do it for the people who put their faith in you, you’re giving them the ability to also create wealth for themselves. Enlist our expertise. Turn this thing on and we’ll make sure your people are taken care of.
For a quick shot of relevant information, see below for what applies to you.
How you run your business means something.
Take a look at things unique to your way of running things.
Just me.
A “solo 401k” affords you flexibility to invest more in flush years and less in others. Many institutions will allow you to set one up online for free. While this option is great, you will need to do a bit of self-regulating and approving of documents and, to keep administration low, it will usually limit features like the ability to take a loan from yourself (yes, that’s a thing) or to take a withdrawal before retirement. Going with a provider (like us) will allow you to utilize any and every feature you want access to.
Owners, no employees.
If you have several friends who are all partners with you as owners, or its a spouse-and-spouse team, you can use the “solo 401k.” Most people don’t know this trick because of the government given nomenclature. A solo 401k means you have a lot of the 401k benefits without the compliance headache. What to keep in mind? As soon as you get an employee it’s time to upgrade. So while you can set up a solo 401k on your own, you may want to have it run by a provider (like us) so we can keep track of compliance related details.
I employ contractors, interns and a few W2 employees.
Workers who are 1099 employees are not permitted to be in a qualified plan, but you can provide your 401k to W2 employees. If your goal is to cover as many people as possible or if you need to watch the budget, there are tools or features (eligibility rules and “classes”) that can help. Communicate your goals clearly and we will help you out. We never judge how you run your business, because our goal is to support yours.
Early stage startup.
If you are an early stage start up, a key question is cash flow and profitability. An Employee Stock Ownership Plan could be a future solution for your ambitious team, or the flexibility of a 401k could be exactly what you are looking for.
I own multiple businesses.
If you are a 5% or more owner in multiple businesses, the next question is do you have employees. If you have employees, there may be a controlled group. Make sure to inform your provider/us so we can determine if it needs to be included for IRS testing purposes. We’ll keep you buttoned up.
Employed family members
It is important to inform your provider which employees are related to an owner, because there are certain family attribution rules that may apply.
What People Are Saying
“Thank you, Leverage! It’s times like these that we realize relationships are everything. Thank you for taking great care of us in 2020!”
— Client since 1994
“Beautifully put!! Let’s get that mind, body, soul, finance chakras aligned!”
— Instagram @Imagodei_yoga
“Love these tips!!! Needed to see #4”
— Instagram @Mamabeans_NYC
“Thank you, Leverage, for supporting small businesses like ours.”
— We the Birds Macarons
Your side-gig is our hustle.
If you are mastering the art of working in the gig-economy, consider the potential of an investment platform (disguised as a retirement account) with all the tax benefits and strength of a normal company 401k. In 401k geek terms: As a self-employed individual you have two roles to play. You are both the employee and employer. This means you can invest the maximum of the IRS Deferral Limit, but then you can put more money in as a “company contribution” if you wanted to. Take advantage of this as a tax strategy for your wealth growth.