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In this brief segment, Mark Kohler explains that establishing a solo 401(k) before the end of the tax year provides several financial advantages. By setting up the plan early, you can make contributions for the following year while still receiving a tax deduction for the current year. The deduction can generate immediate cash flow benefits, and the plan may also qualify for a tax credit. Additionally, the solo 401(k) offers flexibility in deciding when to contribute, allowing you to time contributions strategically. Kohler emphasizes that simply initiating the solo 401(k) before year‑end can be a profitable move.

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