Cindi Turoski is a managing partner of Bonadio Wealth Advisors, LLC, the statewide financial planning division of The Bonadio Group. With over 30 years of deep tax and financial planning experience, she provides consultative services to a wide variety of clients, further specializing in closely-held business owners.
A Solo 401(k) plan could be an option if the business only employs the owner and spouse or has no employees who would be eligible to participate (i.e., they work too few hours to qualify). The plan would need to be established by year-end. The owner’s deferral contribution might be limited if they already deferred some salary into an employer retirement plan before being laid off by a predecessor employer. They might also be eligible to make a profit-sharing contribution.10 December 2021