Solo Roth 401(k)?


W

Will Trice

Is there a financial instituion out there that will be offering a solo
Roth 401(k) next year?

Thanks,
-Will
 
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S

Steve Finn

Are you sure a solo Roth 401(k) was included in the legislation? I
hadn't heard that.
 
W

Will Trice

Well, I don't know. I didn't think that there is separate legislation
for traditional solo 401(k)s either. I just thought that a solo 401(k)
was a 401(k) for one person covered under the regular 401(k) rules. Is
this not the case?
 
B

BMS

Pioneer Investment Management USA Inc. ("Pioneer") today announced that it
will offer a new option to its Uni-K Plan that for the first time allows
investors to make after-tax contributions to an individual 401k plan that
generates tax-free retirement income.
This new 401k option, called the Pioneer Uni-K Plan with Roth, will be
offered starting January 1, 2006, the date new federal tax rules take effect
allowing after-tax (Roth) contributions to 401k retirement plans nationwide.
Under the new rules, Roth contributions can be made to a new or existing
401k account, either as a substitute for, or complement to, an employee's
pre-tax contributions.

"Pioneer is again at the forefront of providing innovative retirement plan
options for the self-employed and high net worth individuals," says
Christopher Laucks, Vice President of Retirement and Annuity Markets at
Pioneer Investments. "The Roth Uni-K is a golden opportunity for many
investors looking to diversify their retirement portfolio, hedge against
possible future tax increases at retirement, and establish a tax-free legacy
for future generations."

Laucks added: "This is a particularly important option for investors who
want to maximize the amount they save for retirement. There are no income
limits on Roth contributions to a 401k, and with federal rules limiting
maximum salary contributions up to $15,000 ($20,000 if age 50 or older),
investors who make the maximum contribution will want to consider the clear
benefit of the Roth plan providing tax-free income at retirement."

In 2002, Pioneer was the first mutual fund company to launch an owner-only
401k plan, called the Uni-K Plan, designed exclusively for self-employed
individuals and owner-only businesses. Pioneer is now the first to announce
plans to offer an owner-only 401k with the Roth option.

The Roth option for 401k plans resulted from one of 400 new tax rules in the
Economic Growth and Tax Relief Reconciliation Act of 2001(EGTRRA) and is set
to expire December 31, 2010. The sunset provision on Roth 401k contributions
creates a five-year window for investors to take advantage of the new rules
and establish a source of tax-free income at retirement.

The IRS has not issued final rules on certain aspects of the Roth 401k,
including how early withdrawals will be taxed. While the IRS has indicated
that it expects to issue final rules this fall, Pioneer still expects to be
able to offer the Roth option to its Uni-K product on January 1.

Like the Roth IRA, the Roth Uni-K allows after-tax contributions to fund
tax-free retirement income. But the Roth Uni-K has fewer restrictions than
the Roth IRA, including no income limits and higher contribution limits of
up to $20,000 in the 2006 tax year (for investors 50 or older) versus only
up to $5,000 with a Roth IRA.

Additional features offered through the Roth Uni-K may include wealth
transfer benefits to heirs and, when combined with current contributions
within the Pioneer Uni-K Plan, tax-deductible and tax-free investing
 
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W

Will Trice

BMS said:
Pioneer Investment Management USA Inc. ("Pioneer") today announced that it
will offer a new option to its Uni-K Plan that for the first time allows
investors to make after-tax contributions to an individual 401k plan that
generates tax-free retirement income.
Thanks, BMS. Has anyone used this company? Are they reputable, etc?

-Will
 

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