Episode 2 of 6
The Solo 401(k) Decision
Fran learns she can contribute up to $69,000/year to a Solo 401(k) — far more than a traditional employee. The model shows what maxing it out does to her retirement timeline.
Key Insight
Contributing $23,000 as an employee plus 25% of net self-employment income ($16,250 on $90k) shelters $39,250/year pre-tax. At Fran's 28% effective rate, that saves $10,990 in annual taxes while building a $1.4M retirement fund by 55.
Model This Scenario