401 k Calculator – Helpful Tools for Requirement Compliance

401 k Calculator

401 k Calculator

The 401 k calculator is a helpful tool that plan participants can use  to compute  their maximum Solo 401 k contribution limits. There are essential details that must be provided in order to get an accurate calculation including the name of the plan owner, the plan year, business type, income, and age. Take note that the type of business you have determines the amount of the Solo IRA contribution whether it is sole proprietorship, partnership or corporation. The age of the plan participant determines whether he is qualified for the additional catch-up contribution or not.

The 401 k Calculator and Contribution Limits

Before you make a lucrative Self-Directed IRA investment, make sure that you know the basics of your required contribution. The Individual k retirement plan makes sure that retirement investors have the highest maximum limit in order to have significantly bigger retirement savings. According to the 401 k calculator, the contribution limit as of 2015 is $18,000 for employee deferral and $53,000 for profit sharing. As for the total combined contribution for the Self-Directed 401k retirement plan, employee deferral is up to $24,000. The total contribution including profit sharing is up to $59,000, due to the $6,000 catch up contribution for participants that are 50 years old or older.

Where to invest your retirement funds?

One of the numerous reasons why the Solo 401 k retirement policy is highly recommended is because it offers almost unlimited investment options. Through using the 401 k calculator, you will know how much you can actually contribute and save on your retirement plan. This allows you to make lucrative investments with huge ROI on several fields including real estate. Retirement investors can embark on investments such as mortgage notes, tax liens, tax deeds, raw lands, and rental properties. Other investment opportunities for income generation through the Owner-Only 401 k include stocks and bonds, precious metals, private businesses, hard money lending, and so much more. Just make sure you don’t get involved with Prohibited Transactions in order to avoid penalties, taxes, and other sanctions.

The best retirement investment starts with the right retirement plan, particularly the Individual 401k. Learn more about this viable retirement investment and comply with the maximum contribution with the help of the 401 k calculator. You can find other useful resources and guides especially with the help of the best 401k retirement plan providers. Establish an account and start building your wealth.

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