401k for Small Business: Are Americans on Track with Their Retirement Savings?

Fidelity recently published its latest Retirement Saving Assessments, revealing that 45% of U.S households are now rated as “Good” or “On Track” with retirement planning. This is an improvement from the result of 38% “Good” or “On Track” in the previous assessment in 2013.

The assessment also confirms that while an average Baby Boomer is now rated “Good” and ready for retirement, Millennials and Generation X are not quite there yet. Each of these two groups received a rating of “Fair”. The good news is that these younger working groups still have the chance to improve their retirement prospect.

Sense Financial recommends that young workers start saving for their retirement as early as possible to take advantage of the compounding effects. Many people have started but fallen off-track when things changes, such as when they switch jobs or to start a business. For this group, it is important to know that there are retirement plans for individuals as well.

For example, anyone who has an earned income can set up an IRA account. The IRA plan gives them the same tax deferral benefits, or tax-free earnings with a Roth IRA. With an IRA, plan participants can shop for their own plan and gain access to a wider selection of investment options. Those who choose to go with a self-directed IRA can even invest on their own without consulting a custodian.

For those who are self-employed, however, a Solo 401k can offer even a better chance to catch up with their retirement savings. The plan offers a generous contribution limit of up to $53,000 a year, plus a $6,000 catch-up contribution for plan participants over 50 years old.

With the higher contribution limits, Solo 401k plan participants can catch up with their retirement savings. The plan also allows flexible investment options, allowing plan owners to decide on the best way to grow their savings. Unlike traditional retirement plans, Solo 401k plan investments can range from stocks and bonds, to real estate, private business, and more.

Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients to obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.

To learn more about Solo 401k, please visit sensefinancial.com.