Before enjoying the perks of the best retirement plan today, it is essential to know the 401 k eligibility requirements to comply with. Not everyone is qualified to establish an account and enjoy the privileges of the popular and highly recommended retirement plan. Make sure you are eligible to open the Individual 401k plan through knowing what requirements to meet.
The 401 k Eligibility Requirements List
The Self-Directed 401 k is available for plan participants who are self-employed and owners of small businesses. For the self-employment prerequisite, all plan participants must prove activities or income generating sources from being an independent contractor or consultant. You may still keep a fulltime employment in tandem with a self-employed job or activity.
Another way to meet the Solo 401 k eligibility requirements is ownership of a small business without any full time employees. No employee must render more than 1,000 hours per year in order to qualify for the retirement plan. Small businesses however could still have fulltime employees who are the owner and his spouse. Other than the two, there should be no more fulltime workers in the company in order to comply with one of the 401 k eligibility requirements.
Privileges for Eligible Participants
Qualified participants enjoy a number of advantages upon establishing the Owner-Only 401 k account. For instance, you can enjoy tax-free earning and withdrawal as long as you qualify to one of the 401 k eligibility requirements. Participants can roll over to the Solo k Roth account in order to avoid tax restrictions. All you need is make after-tax contributions to experience freedom from any tax obligations.
The Checkbook Control 401 k feature is another privilege if you pass the 401 k eligibility requirements. Plan owners can have total access and control over their retirement savings, without any custodian consent and charges. This feature also allows low cost administration and avoiding loads of paperwork required by third party custodians.
Plan owners enjoy a slew of investment opportunities from which they can generate income and profits through using their retirement funds. Passing the 401 k eligibility requirements means establishing the account and earning through real estate, precious metal, and stock and bond investments.
Open a world of endless earning possibilities with the Solo 401 k retirement plan. Your first step to ensuring your financial future and growth with the 401k is through complying with the 401 k eligibility requirements.
. Solo k Roth sub account
. Individual 401k plan
. Self-Directed 401 k
. Checkbook Control 401 k