With its rules, 401k Solo lets you borrow up to $50,000 for any purpose
The 401k Solo plan is the best pension plan for individuals who are ready to take control of their retirement investing and have the knowledge to beat the traditional market returns. If you have a profound understanding of the real estate industry or any other business, you have the freedom to invest your retirement funds in these sectors with a Solo 401k plan. Not only that, you will also get tax-free or rather penalty-free access to a solo 401k loan amounting up to $50,000.
The 401k Solo plan is targeted towards owner-only businesses, self-employed professionals, or small business owners with no full-time employees. It doesn’t require a specific legal structure or registration to ensure plan eligibility. Whether it is a corporation, a sole proprietorship, an LLC, a partnership, or even if the business is operating as an independent contractor, you are eligible for the plan.
401k Solo is the most innovative qualified plans among others
401k Solo plan offers small business owners or any self-employed person the capacity to invest their retirement funds in any investment opportunities they find fruitful. He or she may choose among different options including real estate, businesses, tax liens and tax deeds, or precious metals without having the need of an approval from their designated custodian. On top of the investment opportunity, your money grows tax-deferred in this retirement plan.
Among all plans approved by the IRS, the 401k Solo plan caters to the widest range of account holders, primarily because of its investment freedom. The high contribution limits allow clients to take full advantage of tax deductible contributions which could reach up to $56,500 per year. Solo 401k rules will let you borrow an amount up to $50,000 for any purpose it may serve you. The plan also broadens the investment horizon for your retirement funds, except investing in collectibles.