Repairing the Damage to Your Nest Egg Wall Street Journal (10/01/02) Vol. 12, No. 8 p.D1; Opdyke, Jeff D.; Higgins, Michelle
Changes in the tax law allow employees to increase their contributions to their 401(k) plans if they are 50 or older by $1,000 over the current $11,000 limit, but another option has emerged. The solo 401(k) allows those with consulting jobs, freelance work, or other small businesses to sock away more money for retirement--up to $40,000. However, the plan also has some pitfalls; businesses that report taxable losses cannot fund a solo 401(k) plan, for instance.