Working at home is a great way to earn income without leaving the comfort of your home. However, you can’t be working forever. Sooner or later, you will have to retire. When this happen, your source of income will be gone, and what will be left is your retirement benefits that might not be able to give you all the things that you will need. 

Not if you have a work at home 401k plan. What exactly is this work at home 401k plan?  The work at home 401k, or self-employed plan, is named after a section of the tax code from the Economic Growth and Tax Relief Reconciliation Act of 2001. The work at home 401k plan is an employer plan established by your employer that lets you set aside a percentage of your pay before taxes are taken out. Generally, such a plan is funded with your salary contributions which are matched by your employer’s (in this case, you because you are self-employed) contribution before tax deductions. 

This work at home 401k plan offers great tax opportunities for those who work at home and other small businesses. This plan can also give you some cash benefits. Other advantages of the work at home 401k plan are as follows: 

High limits on contributions

With a work at home 401k plan, there are limits to your elective salary deferrals and employer contributions. These limits enable the sole proprietor, like yourself, to contribute up to the lesser of 100% of aggregate compensation. 

Assets can be rolled over

If you have an IRA or other retirement plan, you can roll that over to a work at home 401k plan. There is no limit on rollovers. 

Contributions are fully tax-deductible

These are also based on compensation and earned income. 

Any self-employed person can join and take advantage of the 401k plan. From single business owners, freelancers, independent contractors with 1099 income, sole proprietors, partners, Limited Liability Companies (LLCs), to Corporations – al of them can enjoy the tax benefits of a work at home 401k plan.