Personal Finance & Money Asked by Maxim Neaga on March 25, 2021
Is simply contributing to my solo 401k account and keeping it in cash balance enough to take advantage of tax deferral, or do the funds need to be invested?
Is simply ... keeping it in cash balance enough to take advantage of tax deferral
Yes, because the amount you contribute to the 401(k) is deducted from this year's income (EDIT: he didn't mention Roth), to be paid when you withdraw it many years from now.
However, by keeping it in cash, you are:
Thus, at the very least invest in high quality (government or corporate) bond funds so as come close to keeping pace with inflation.
Correct answer by RonJohn on March 25, 2021
Get help from others!
Recent Questions
Recent Answers
© 2024 TransWikia.com. All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP