A 401(k) is a deferred tax saving plan where the employees of an organization/business save a part of their salary in 401(k) funds, for which she/he will not be required to pay taxes until the age of retirement. Here, both the employer and the employee will be allowed to make contributions into the fund. An individual 401(k) plan covers only the business owners, partners and their spouses thus freeing them from the complexities of the ERISA rules. They receive similar tax benefits as the general 401(k) plan, but without the involvement of the employer as compared to general 401k plans. It is specifically designed for businesses without full-time employees, and is for a self-owned or a self-employed business. Hence, it is also called Solo 401(k) plan or Self-employed 401(k) or one-participant 401(k) plan.
The contributions under this plan are similar to a general 401(k) plan where the profit sharing contribution is made by both the employer and the employee. Different contribution caps are available for different types of businesses. But, since in most cases, both the employer and the employee are the same, the contribution can be slightly higher. Also, provisions are available for additional contributions for plan holders who are above 50 years of age.
Basic qualification for an individual 401(k)
Types of individual 401(k) plans
These are classified based on the documents and the agreement that states and controls the operations of the plan. The employer can customize the plan agreement according to the options available in the basic plan offered by a plan sponsor. A plan sponsor is a company that offers a plan to the employer, either as an individual designed plan or a prototype plan. There are two types of solo 401(k) plans where an investor can select a plan based on her/his investment goals, asset preferences, fee schedules and the level of control desired.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.