How a Solo 401k Supercharges Early Retirement Savings

Lucas and Luna explore how early retirees and aspiring early retirees can use a Solo 401(k) to supercharge tax-advantaged savings beyond the typical 401(k) limit. They walk through the mechanics of the 'employee plus employer' contribution structure, showing how a side hustle or self-employment income can allow someone to stash away up to $69,000 in 2025—and how that number jumps to $76,500 if you're over 50. Lucas explains the after-tax (Roth) option and the mega backdoor Roth conversion strategy, while Luna questions whether the complexity is worth it for someone with modest side income. They anchor the discussion with a concrete example: a software engineer earning $20,000 from freelance consulting in a year, and how that $20,000 unlocks access to a retirement contribution room far larger than the income itself. The episode closes with a practical checklist for setting up the account, including which brokerages offer solo 401(k)s that allow Roth and after-tax contributions. #Solo401k #EarlyRetirement #SelfEmployedRetirement #MegaBackdoorRoth #RetirementSavings #SideHustleRetirement #TaxAdvantaged #FIRE #SelfEmployedTaxes #RetirementPlanning #401kLimits #Roth401k #FreelancerRetirement #PersonalFinance #Finance #RetirementStrategy #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo