A Solo 401(k), also known as a Self-Employed 401(k) or Individual 401(k), is a 401(k) qualified retirement plan designed specifically for employers with no full-time employees other than business owners and their spouses.
Once the client’s new CPA had revised the draft return by including the Solo 401(k) plan as a deduction, the couple’s tax obligation was reduced by $10,000 in 2018 taxes, Rinzema said.
When asked if his client was still using the same CPA, Rinzema indicated that if the decision were left up to him, the answer would be “no.”
“We made a number of recommendations to him for a new one,” he said.
Rinzema said that about 85 percent of his firm’s business is servicing individuals and families. The firm requires clients to have a minimum of $2 million, but Rinzema said the average client has about $12 million dollars in assets under management.