I'm a little baffled. I am a sole proprietor, and through a TPA (third party administrator) I run the 401k myself. (i.e.-401k solo, part of the 2001 tax changes) I make all the investment decisions. I make all the rules in the 401k. I'm the only person in my company who gets a 401k...I'm the only employee in my company.

I am 36 years old. Who wouldn't want to have all of their money tax deferred and tax free(except for annual initial investment) with an upper limit of $40,000 rather than $3,000? All the benefits of a Roth, with 13x the amount of money to put in each year.

My question, can it be done legally?