When it comes to highly lucrative retirement plans, the Solo 401 k retirement account is a top choice. Sense Financial, renowned administrator and provider of the Individual 401 k retirement plan showed how to invest your money on lucrative businesses and fields without the burdens of tax restriction. Good thing there are various investment options with high benefits using the 401k Roth sub-account.
Three Benefits of the 401k Roth
Here are some of the upsides of using the Individual 401k retirement account taking advantage of its Roth feature:
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Loan and Borrowing From Your Funds
One of the many reasons why more and more people prefer the Owner-Only retirement plan is the loan feature. Aside from the countless upsides of the 401k Roth, plan owners could also borrow money or loan from their retirement funds. Plan holders could borrow money from their account at any given time. Moreover, it depends on the owner where he would use his money for. It could be used for any purposes including paying off debts or personal credits, tuition or starting up a new business among others. Borrowers could loan up to $50,000 or 50 percent of their savings.
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Checkbook Control
Plan owners could take advantage of the easy and convenient 401k transfer feature. This means they could borrow their retirement money without lengthy processes, tons of paperwork or any consent from custodians through the Checkbook Control feature. The 401k Roth feature allows plan owners to be their account’s trustee and use their retirement funds as easy and convenient as writing a check.
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High Contributions, Tax-free Solution
Not only could plan holders take advantage of the easy 401k withdrawals. They could also make high contributions without any tax limits and obligations through the after-tax contribution feature of the Roth retirement plan. The contribution limit of the plan is up to $23,000 per year which they could provide after-tax. There is a huge difference since the Roth IRA retirement policy only allows $6,500 maximum contribution in an annual basis. With high contribution limits, plan owners could save a huge amount of money through the tax-free solution.
The 401k Roth sub account is a remarkable feature of the Owner-Only retirement policy. Plan holders have the chance to potentially grow and invest their money in a diversified investment field. Top notch and trusted retirement plan administrators such as Sense Financial could make it possible upfront.