With the Solo 401k retirement account, you can make the most of your retirement savings without hassle and stress. There are innumerable points to consider especially the basics of the Self-Directed retirement policy. It is essential to learn from establishing the account to other most vital factors such as the 401k withdrawal, loan feature, Roth sub account and many others.
What to know about the Solo 401k?
The eligibility requirement to establish an account especially with high quality and dependable administrators such as Sense Financial is a must-know. There are two main requirements in order to qualify and establish a retirement account:
- The presence of self-employment or employment posts such as independent contractor and consultant.
- Small business ownership without full-time employees except the owner(s) and their spouse.
Understanding the 401k Withdrawal
Knowing the fundamentals of the 401k withdrawal rules is as important as learning about and understanding how to establish and open the Solo 401k retirement account. There are salient points to learn when you are learning about the borrowing money from your retirement plan:
- Plan owners could loan or borrow up to $50,000 from their total retirement account value or 50% of their retirement savings whichever is less. The amount must be repaid through flexible terms and conditions and in full. The funds could also be used for any purposes.
- The Solo 401 k retirement funds could be borrowed by the plan holder with minimal interest rate. Moreover, there are easy ways to loan the amount through the Checkbook Control for the 401k withdrawal feature.
- Plan holders could access their account funds without custodian’s consent and they could easily do this to use their money in a wide range of investment options.
Highest Contribution Limits 401k
Aside from the easy and convenient 401k withdrawal, account owners could also enjoy the highest contribution limits for the Solo 401 k retirement plan. For plan owners who are below 50 years of age, the maximum contribution in a yearly basis is $17,500. Plan holders who are 50 years old and above may add a catch-up contribution of $5,500 to make their annual contribution $23,000. The higher the maximum contribution, the bigger the funds to borrow and use for investment and boosting their retirement savings.
With the remarkable features of the Solo 401k along with the convenient and easy 401k withdrawal, plan owners have the most beneficial retirement policy to rely on for their golden years.