It is always practical and wise to invest on retirement plans particularly the Solo 401 k. Sense Financial is the top administrators of this retirement policy where you can enjoy numerous benefits and upsides when you established your account. The 401k plan loans are top reason why more and more people are opting for retirement plans today. With the right retirement policy, you can certainly watch your money grow and multiply especially when you use your retirement savings in the right investment.
The Basics of the 401k Plan Loans
Plan participants could use their retirement savings when they established the Individual 401 k. The benefits of this retirement policy are overwhelming especially when they could maximize the upsides of their account. For instance, borrowing money from your plan is possible although this is not an encouraged option. However, in cases when you really need the money you can definitely borrow from your account. Plan owners could borrow 50 percent of their policy value or up to $50,000. The borrowed amount could be utilized for various purposes such as to pay back personal debts, medical bills, invest in their own business, or any other purposes for personal needs.
The Checkbook Control Feature
The Solo 401k retirement policy aside from the flexible investment options could provide convenience of access to the plan owner. The 401k real estate investment is quite easy to do especially with the Checkbook Control feature of this retirement plan. For instance, the plan allows owners to make investments as simple as issuing a check. The plan holder is his own account trustee. There is no need for a custodian in order to access and use your retirement savings to make that lucrative and fruitful investment. The Individual 401 k plan along with the assets of the policy is under the exclusive and sole authority of the plan owner. Moreover, the plan holder is saved from heaps of paperwork and documents which are necessary in other forms of loans.
Other Upsides of the Solo 401 k
Aside from the 401k plan loans, owners could also enjoy tax-free solutions and benefits especially with the Roth sub-account which owners could choose. This feature allows the owner to make after-tax contribution which is free from tax obligations. There are no income restrictions when owners opt for the Roth feature thus giving the owner more financial benefits compared to simple or the traditional IRA retirement plan.