Everyone wants financial growth and success but only the best 401k retirement plan for self-employed individuals can provide viable results. Aside from the 401k contribution maximum limit which is 10 times higher than Traditional IRAs, the retirement plan also offers other privileges. As long as you are eligible to establish the Self 401 k retirement account, you will enjoy unlimited opportunities to use and earn from your retirement savings.
Why it is the best 401k retirement plan for self-employed individuals?
The Participant-Only 401k retirement plan is open for self-employed and small business owners. These are the two most important eligibility requirements to comply with in order to establish an account. It is considered the most lucrative venture for retirement investors because of its exciting perk such as the loan option 401k. The best 401k retirement plan for self-employed individuals allows plan owners to borrow from their retirement plan, up to $50,000 or half of the total plan value. Thus, if your total plan value is $30,000, you are eligible to borrow up to $15,000.
Borrowers must repay the borrowed amount at least quarterly and within a 5-year time frame in order to avoid any penalties and taxes. The best 401k retirement plan for self-employed individuals also offers the lowest Prime Rate + 1% which is the required interest amount for repayment. The plan owner can use the borrowed amount on his discretion from bill payment to tuition fee payment to business startup.
Tax-Free Investment and Profit
One of the top perks of the best 401k retirement plan for self-employed individuals is the tax benefit. All contributions and incomes are tax-deferred and allowed to grow uninterruptedly. With the Roth Individual 401 k sub account, the participant makes an after-tax contribution to the plan in order to avoid any tax obligations when making investments, earning, and withdrawing from the account.
Low Cost Administration
The best 401k retirement plan for self-employed individuals is also a low cost administration option for a retirement account. The Checkbook Control feature automatically makes the plan owner the trustee of his own retirement plan. This means there are no third party custodians involved in managing and controlling the account. You can use and access your retirement money and invest it on permissible niches without custodian consent and related charges.
The best 401k retirement plan for self-employed individuals is the perfect financial solution for retirement investors. It gives you viable ways to invest, earn, and make profits with tax-free features.
. 401k contribution maximum limit
. Self 401 k retirement account
. Roth Individual 401 k sub account
. Loan option 401k