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Author: coachtom4 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25247  
Subject: Re: Roth 401K-brokers that allow individual stoc Date: 8/8/2013 4:48 PM
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People get Roth IRA's and Roth 401(k)'s confused all the time. Make sure you differentiate the two when you are reading articles. Roth 401(k)'s basically do not have an income limit, other than you cannot contribute more than your earned income.

It sounds like you want an "individual 401(k) or sometimes people call it a "solo 401(k). Here is the link to Schwab's version, which I have recommended to people in the past.

http://www.schwab.com/public/schwab/investing/accounts_produ...

They definitely allow individual stocks.

You can contribute $23,000 to your Roth 401(k) and so can your wife. The assumption here is that you both have earned income of at least $23,000 each. Earned Income can be complicated so you may want to talk to your accountant. The overly simplified answer is what do each of you pay medicare taxes on? That is your earned income.

You can also make a tax deductible employer contribution. Assuming you are 50 and contribute the maximum to the Roth, then this is capped at $33,500 if you have enough earned income ($134,000).

Make sure that Schwab, or whomever, understands that you are making Roth contributions when the plan is setup, otherwise your taxes will get all messed up.

There may also be annual filings with the DOL when you set up this kind of plan and the assets grow. Again, your accountant may be able to help you.

Hope this helps.
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