Solo 401(k) plan contributions, simplified: Meet Guideline’s digital contribution features
Every solopreneur has a long list of time-consuming tasks to get done each day. From sales to marketing, pricing to relationship management, there's always a ton to do — and that’s before providing the service you offer.
Based on this, it's no wonder that 34% of solopreneurs aren't saving for retirement, or that 81% wish they'd learned about it earlier.1 When you're a business of one handling everything a small business would cover with employees, you may not have much time to focus on anything but your business.
Enter the Solo 401(k) plan. It's a powerful way for solopreneurs to save for retirement, all while helping to lower your tax bill. But for a period of time, contributing to it could be a clunky process.
That's where Guideline's flexible Solo 401(k) contributions come in — a set of fully digital options that provides easy, flexible, and transparent control over when and how you contribute, entirely on your own schedule.
Read on to learn how Guideline’s flexible Solo 401(k) contributions can help you ditch the paper check and automate your contributions so you can help build your nest egg.
The Guideline difference: Digital, flexible contribution options
As a business owner, your income can fluctuate, and Guideline understands that your retirement savings plan needs to be just as flexible. Instead of mailing in a paper check, you can contribute to your Solo 401(k) plan in several ways. Guideline offers several quick and convenient ways to contribute, all with timely confirmation. No matter how you pay yourself, you can tailor your contribution schedule to fit your needs and you can add or cancel contributions at any time.
- Payroll deductions. This can be a great option if you file as an S- or C-corporation and pay yourself a regular salary via W-2 wages. You can set up automatic deductions from each paycheck, helping to make saving for retirement a seamless part of your routine. If your wage type ever changes, we'll carry over your contribution amount and send you a reminder to adjust it if needed.
- Owner contributions. If your income is as a sole proprietor or partner and fluctuates throughout the year, you can make owner contributions to your Solo 401(k) plan directly from your business account. There are two ways to do so:
- One-time deposits. Having a great quarter and want to contribute more? You can easily make a lump-sum, one-time deposit to your account. Note that you can make multiple one-time deposits throughout the year.
- Scheduled recurring deposits. You can also schedule recurring contributions from your business account. This is a simple way to stay on track with your retirement goals, and you can set up multiple recurring schedules at once.
- Business type matters. The business type you use to file your taxes has a direct impact on eligible compensation used to make contributions to your Solo 401(k) plan. It’s recommended that you consult with your tax advisor before you begin contributions to your 401(k) plan.
What this means for solo entrepreneurs
In our opinion, solopreneurs should expect easy, digital contribution options for their Guideline Solo 401(k) plan, just like a traditionally employed person. Our streamlined process helps reduce the complexity and stress of saving for retirement, which can give you peace of mind. That means we'll handle your retirement savings so you can keep your focus where it matters most: your business
Smoother saving isn’t just about getting time back, though. Digital flexibility can help you stay disciplined with your retirement goals. It can remove the barriers to actually making contributions, potentially increasing the amount you’ll save in the long run. This can be even more important with a Solo 401(k) plan, since you may have the opportunity to contribute ten times more to a 401(k) plan than to a personal IRA.2
Ready to start saving for retirement?
Even though you’re grinding, you don’t have to potentially miss out on the tax advantages and future benefits of saving for retirement. Guideline’s flexible digital contribution options can make it easy for you to start saving today.
If you’re ready to start saving for your future, explore opening a Solo 401(k) plan with Guideline today.