Solo 401k Plans: Chase vs. Sense Financial
Are you a Chase customer who wants more 401K options than Chase offers? Good news! You can establish a self-directed Solo 401k plan from Sense Financial that is designed to offer all possible features and benefits allowed under the law.
Solo 401k Plans: Chase vs. Sense Financial
Many financial institutions, including Chase, Charles Schwab, and Fidelity offer Solo 401k plans. However, their plans keep your entire retirement savings invested in the stock market. Their plans do not include the full range of features, such as the loan feature or the ability to make Roth or after-tax contributions.
The Sense Financial self-directed Solo 401K meets the unique investment needs of the self-employed. Small business owners with no employees other than the owners, independent contractors, and consultants are eligible for a Solo 401k. With this plan, you can enjoy the benefits of a conventional 401(k) plan without a custodian.
The Solo 401K plan from Sense Financial allows you to diversify your retirement savings into non-traditional assets such as real estate, contribute to your Roth Solo 401k, and borrow up to $50,000 from your plan. Here are some of its features:
Total Control
Our plan gives you total checkbook control over your 401k funds. You can open your 401k account at a bank, a brokerage, or both. Nearly any type of investment, traditional or non-traditional, is available to you. You can invest your 401k in real estate, tax deeds, tax liens, notes, stocks, mutual funds and much more. Since you are made the trustee of your plan, you have control over your investments. Making an investment is as easy as writing a check.
High contribution limits
The Sense Financial plan allows you to make tax-deductible yearly contributions up to $51,000 annually (for 2013) with an additional $5,500 catch-up contribution for those over age 50.
No UBIT on leveraged real estate
With a Chase Solo 401k, you are unable to use non-recourse financing to make a real estate investment with your retirement funds. Our Solo 401K plan allows you to use non-recourse leverage tax-free for real estate investments.
Low cost to maintain
Our plan is simple to operate. There are no annual filing requirements for your plan until its value reaches $250,000. A simple informational return, the Form 5500-EZ will then be required.
Loan Feature
The Solo 401k loan feature allows you to borrow up to $50,000 or 50% of your account value, whichever is less, for any purpose. The funds can be used to pay credit card bills, mortgage payments, personal investments, etc. Chase’s Solo 401k does not offer this feature.
Roth sub-account
As a Chase customer, you are not allowed to make Roth or after-tax contributions to your 401k plan. Our plan contains a Roth sub-account. You can contribute to your Roth Solo 401k, rollover to your Roth Solo 401k, and perform in-plan Roth conversions.
Sense Financial Services works with you to set up your Solo 401K plan. Our experienced team will streamline the set-up time and cost, bringing peace of mind and a fee that is significantly lower than other companies.