ABG Solo(k) is for Entrepreneurs

Entrepreneurs are the life-blood that stimulate our economy. Their innovation and drive increase the products that we have available to us, improve our standard of living, and create jobs for the next generation.

There are a hundred-and-one details that they are responsible for managing. While it can be easy to get caught up in the details, saving for retirement is a crucial "big picture idea" that cannot be overlooked.

The ABG Solo(k) is a retirement solution for self-employed individuals with no employees. It can also cover their spouses. Entrepreneurs who work part-time, such as consultants, are still eligible for this plan. The ABG Solo(k) is similar to any other retirement plan; the difference being the plan size (as detailed above).

Creating an ABG Solo(k) plan is easy, and can save entrepreneurs time and money. It also maximizes the participant's potential contributions.

"The ABG Solo(k) Plan is incredibly fast to setup. We compile service agreements, account applications, and schedule a welcome call. You will receive a package for signatures, and then we will handle the rest on our end! By investing in ABG Solo(k) as opposed to a SIMPLE IRA or a SIMPLE 401(k), you may be able to put the maximum employee pre-tax deferral of $18,500 away, as long as you have earned income. If you are over age 50 you can add an additional $6,000 dollars pre-tax deferral. You can also add an employer contribution, known as a profit sharing component, to your plan where you can add up to $36,500 more into your plan."

- Fran Mulgrew, Director of Business Development at ABGRM

Following the implementation process, entrepreneurs will spend approximately 2-3 hours each year uploading information and filling out information packets. Older participants can combine their ABG Solo(k) plan with a DB plan to further increase their savings.

Tax Advantages

An ABG Solo(k) may substantially reduce your current income taxes because generally, you can deduct the entire amount of your plan contributions from your taxable income each year.

  • If your business is unincorporated, you can deduct contributions for yourself from your personal income.
  • If your business is incorporated, you can generally deduct contributions as a business expense.
No Plan ABG Solo(k) Plan
Net Business Profits $100,000 $100,000
Less Deduction for ½ Self-Employment Tax -7,065 -7,065
Less Max. Contribution (25% of earned income) -0 -18,587
Less Salary Deferral -0 -18,000
= Taxable Income $92,935 $56,348
Taxes Due $19,059 $9,858
Taxes Saved $0 $9,201

Investing in a 401(k) plan as opposed to a general savings account has a higher potential return. Last year, Mulgrew had a 22% return on her 401(k)!

The ABG Solo(k) is tailored to fit the entrepreneur's needs and maximize their retirement savings. Trust us to handle your savings so that when the time comes to enjoy the benefits of your hard work, you can take full advantage of your retirement.

Click Here to Start Your ABG Solo(k) Plan Today!