The Motley Fool Discussion Boards

Previous Page

Financial Planning / Foolish 401(k)s


Subject:  Re: Roth 401K-brokers that allow individual stoc Date:  8/7/2013  5:39 PM
Author:  aj485 Number:  25092 of 26351

To make a short story long, my wife and I are self employed and work together. No employees. Is there a broker that will allow me to get a Roth 401K and buy the stocks I want?

Yes, they are often called 'solo' 401(k)s or 'single' 401(k)s. If you have a relationship with a broker other than Sharebuilder, you can ask there. Otherwise, you might want to start with Fidelity or Vanguard

I think there is an income limit rule on this too but I don't know if that is the gross income of the company, after all deductions or what. I'm reading conflicting stories.

There are income limits. For the Roth portion of a 401(k), you, as the employee, can put in up to $17,500 (plus a $5,500 catch up contribution if 50 or over). The employer can contribute a total of $51,000 or 25% of the business profit, whichever is less. The employer contribution plus the employee contribution for an individual cannot exceed $51,000, not including the catch-up contribution for those 50 or over). All employer contributions must be pre-tax, so they cannot go into the Roth portion of the 401(k).

Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us