Today’s real estate word of the day is 401k slash four or three. My name’s Mike Acquisto. We’re going to go ahead and define that word for you using this sentence and then quickly, very quickly, discuss it for one. Kagoro three B is an employer sponsored investment plan that allows individuals to set aside tax deferred income for retirement or emergency purposes.
401K plans tend to provide employers that are with private corporations, whereas A 403 b are provided by employers that are not for profit organizations. So profit, not profit for one K for profit 403 B if you work for A not for profit, but retirement accounts directly through your company. All right. So that’s the definition that was quickly discussing it. And I highly recommend that as a real estate agent that you do have a 401k.
So you might think you’re not eligible for it. But as an independent contractor, you are probably a business of one. And in that case, you can set up over one K as long as every employee that works for you is eligible. So if you’re an organization of one, then technically every employee you have would be eligible and you can contribute to the 401k.
I might suggest go with something, may maybe a vanguard or something like that. We have them set up for ourselves as a 401k from both my wife and myself. We each have our separate companies and we invest through the 401k directly through that.
So if you want to do, that’s an option to put money in in addition to your IRA or your Roth IRA. There you go, reach out, do you have any questions?