Getting it Right - Welcome

The goal of this blog is to publish my thoughts on a variety of economic and political topics in the hopes that people who find them educational or beneficial will utilize them and/or forward to others who might find them interesting and/or worthwhile to promote to others, possibly including politicians who can push some of these ideas to fruition. The topics in my blog are meant to be of value on a long term basis, not a daily diary or political issue of the day log. If the information posted is useful to you, by all means utilize it and/or forward it as you see fit. If not useful, then merely ignore it. There are no universally agreed upon truisms and too little tolerance between some of those with opposing viewpoints to successfully convince the people with hardened opinions to move away from them. I am an analytical type person who will try to be as factual as I am able.

I disdain the current popularity of name calling and condemnation of viewpoints with no factual alternatives or logical solutions given that I see so often. If you don't have a solution based on fact and logic, then opt out of the discussion because you have nothing to contribute. My background is a degree in Economics from the University of Michigan and 39 years working in middle management jobs for a major retailer. My opinions are forged on the personal experence of life, family, friends, and work as well as triumphs and mistakes that I have made and hopefully learned from. My hope is that this blog helps you.

My first topic will be about personal finance. I chose that one first because most of us work long and hard just to survive but not all of us realize our dreams of becoming financially independent from the labors of our work. Much of our political votes/thinking also focus on the economy and in particular how well we are personally doing financially.

It is relatively simple, without sacrificing the enjoyment of living for 'today' and even at moderate incomes, to retire as a millionaire or multi-millionaire, if you focus on that goal consistently from a young age. It is also simple to ensure that your child or grandchild retires rich. It merely requires a one time gift of just $2,000 invested wisely and the passage of time. Please read my first post on this blog to learn more.


Getting it right on Politics, Economics, and Personal Finance

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Thursday, December 25, 2025

Sole Owner 401K Contribution Limits 2026

A sole owner of a business can take out two kinds of 401Ks, each with very high maximum contribution limits:

1. As "sole owner" of the business - "Solo 401K" - Employer Non-Elective Compensation.

Maximum contribution to a "Solo 401K" in 2026 is up to 25% of compensation to a maximum of $72,000 each year, or if 50 or over, a maximum of $80,000 each year.

2. As an "employee" of the business - "401K" - Elective Deferrals

Maximum contribution to a "401K" in 2026 is $24,500, or $32,500 if 50 or over.

3. Total combined 401K maximums each year are $97,000, or $112,500 if over 50!!

Be smart and make sure both the solo 401K and the 401K are Roth 401Ks, not Traditional 401Ks. Otherwise you will pay a fortune in Federal income taxes and in some cases state income taxes when your Traditional 401Ks are withdrawn in retirement as these annual contributions, if invested in the stock market, are likely to average double in value every 7 years. With Roth 401Ks, you will not pay taxes on withdrawals in retirement.

4. Plus do not forget that you can still take out IRAs annually too, Again, always invest in Roth IRAs, not Traditional IRAs. Annual 2026 IRA contribution limits are $7,500, or if 50 or over 50, $8,600 a year.


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