A lot of people consider the Self-Directed 401k retirement plan a great wealth-building opportunity mainly because of the high 401 k 2015 maximum contribution. According to experts in the retirement plan niche, the Solo k for self-employed and small business owners offers maximum contribution limits per year almost 10 times higher than other plans in the market. The rationale is that the higher you can contribute and save in your plan, the more money you can actually invest for wealth-building.
About the 401 k 2015 Maximum Contribution
Based on the updated data regarding the Individual 401k retirement plan, the maximum contribution as of 2015 for the employee deferral elective is $18,000. However, if the plan participant is 50 years or older, his 401 k 2015 maximum contribution is adjusted up to $24,000 due to the allowed $6,000 catch-up contribution. For plan owners who choose the profit sharing contribution elective, the total contribution limit for participants 50 years and older is up to $59,000. It is also important to note that other retirement plans such as SEP IRA do not allow salary deferral contributions.
Where to use your retirement savings?
Now that you have established the fact that the 401 k 2015 maximum contribution is the highest in its niche, it is imperative to know which investment fields you can use your savings in. A lot of plan participants could see their money grow especially with the help of the right plan provider. Choose a plan provider that is willing to allow checkbook control and alternative investments.
With a self directed Solo 401k, you can definitely enjoy the highest 401 k 2015 maximum contribution and wealth-building activities such as those in real estates. You can buy mortgage notes, tax liens, tax deeds, and even invest your retirement savings on precious metals and foreign currencies. You can also explore investment options in stocks and bonds, hard money lending, and even private business. Just make sure that you do not use your big retirement savings from a high 401 k 2015 maximum contribution in activities that are considered Prohibited Transactions.
With the rise in the demands for lucrative investments and wealth-building, venturing into the Owner-Only 401k retirement plan is a smart and strategic move. It offers a world of money-making opportunities with the highest 401 k 2015 maximum contribution that other retirement plans fail to deliver. Learn your options and make sure that you established the Individual k account with the right plan provider.
Related Keywords
. Solo Roth 401k
. Individual 401k retirement plan
. Self-Directed 401k
. Solo k for self-employed