ADVISORY FINANCIAL SERVICES

Advisory Financial Services is a bi-coastal fee-only comprehensive financial services firm, a Registered Investment Advisory with over 30 years of financial services experience, committed to helping our clients improve their long-term financial success. 

 SELF-EMPLOYED BUSINESS OWNER ALERT !!    LOOKING FOR TAX DEDUCTIONS 

The business owner wears two hats in a 401(k) individual/solo plan: employee and employer. Contributions can be made to the plan in both capacities. The owner can contribute both:

2025 401K SOLO PLAN CONTRIBUTION LIMITS  The maximum total contribution for both employee and employer portions is $70,000, or 100% of your compensation, whichever is less, not including catch-up contributions. Including catch-up contributions, the maximum is $77,500 for those age 50 or older (excluding ages 60-63) and $81,250 for those aged 60-63..

It's important to keep in mind that the overall contribution limit is for all 401(k) plans and types of contributions in the aggregate. Therefore, if you contribute to a 401(k) plan through your employer, this lowers the amount you can save in your Solo 401(k) plan. Obviously, if you only have one 401(k) plan, you may contribute the maximum to that plan.                             

• New Accounts must be set up before December 31 each calendar year, but not funded until the next tax filing deadline, usually April 15.

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