Turning Financial Planning into a Path of Empowerment: Trump Tariffs Affects
Great Day Radio
Financial literacy begins with clarity on your goals and understanding the tools available for investment. We discussed establishing a Solo 401(k) for retirement savings and explored the implications of tariffs introduced during the Trump administration on the American economy.
• Financial goals guide investment choices
• Establishing a Solo 401(k) offers significant benefits
• Various contribution options available for retirement savings
• Federal government spending's role in economic health
• Tariffs serve as a protective economic measure
• Impact of tariffs on consumer prices and industry dynamics
• Balancing domestic protections with global trade relationships
• Importance of informed policymaking in economic strategies
Setting up a Solo 401(k) is straightforward and involves several key steps:
1. Determine Eligibility:
- To qualify, you must be self-employed or own a business with no full-time employees other than your spouse.
2. Select a Provider:
- Research financial institutions—like banks, brokerage firms, or retirement plan providers—that offer Solo 401(k) plans. Compare fees, investment options, and customer service.
3. Choose the Plan Type:
- Decide between a traditional Solo 401(k) for tax-deferral or a Roth Solo 401(k) for tax-free withdrawals in retirement.
4. Complete the Necessary Paperwork:
- Fill out the plan documents provided by your chosen institution. This usually includes adopting the plan and setting the plan's rules.
5. Obtain an Employer Identification Number (EIN):
- If you don’t already have an EIN, you will need to obtain one from the IRS. This is necessary for tax reporting and to establish your retirement plan.
6. Fund Your Solo 401(k):
- Start contributing to your plan once it’s established. Ensure you're aware of the contribution limits and deadlines.
7. Maintain Records and Compliance:
- Keep accurate records of your contributions and investments. While Solo 401(k)s require minimal reporting, if your plan’s assets exceed $250,000, you’ll need to file a Form 5500 annually.
8. Review and Adjust Your Plan:
- Regularly review your investment choices, contribution levels, and financial goals. Adjustments may be necessary as your business grows and your financial situation changes.
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