The Qualified Plan 401 k is one of the most viable investment vehicles for retirement investors who are looking for wealth-building activities. The Individual k plan participants can basically utilize their retirement money in order to fund diversified investment fields such as real estate. Make sure you have full details of the fundamentals of the retirement plan 401 k in order to maximize the full potentials of your account.
The Qualified Plan 401 k Must-Knows
There are various primary details that every plan owner must learn and understand about their plan. however, if you establish your retirement plan with the right plan provider, you will certainly receive the right assistance and facilitation from day one. Here are some of the most important things to know about the Qualified Plan 401 k:
Plan Eligibility
Those who are qualified to establish the retirement account are individuals who can prove their self-employment activities or own a small business. The Qualified Plan 401 k participant should have a generated income from being self-employed or working as independent contractor or consultant. Small business owners on the other hand must have no fulltime employees in their company except the owner and his spouse.
Solo 401 k Contribution Limits 2015
Plan participants enjoy 10 times higher contribution limit compared to or Traditional IRA plans. The Qualified Plan 401 k contribution for salary deferral elective is $24,000 including the $6,000 catch-up for participants that are 50 years old and older. A total combined contribution is $59,000, including the profit sharing elective.
Loan Option
The Qualified Plan 401 k also allows plan owners to borrow half of their plan value or up to $50,000, whichever is less. Choose the right plan provider to facilitate your loan option and provide you with an online 401 k loan calculator. The borrowed money must be repaid within 5 years in a quarterly basis with Prime Rate + 1% interest terms.
Checkbook Control
Plan owners can use their retirement money on investments to help earn income and profit from such wealth-building activities. The Qualified Plan 401 k allows easy access to your retirement money through the Checkbook Control feature which is as easy as writing a check.
With the Qualified Plan 401 k, you are well on your way towards financial security and stability using your retirement money. Watch your funds multiply through the most lucrative investment with the most convenient retirement money access.
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