Why Independent Contractors Need the Self-Directed Retirement Account 401k

Self-Directed Retirement Account 401k

Self-Directed Retirement Account 401k

Independent contractors such as real estate agents and brokers could get a lot of benefits with the Self-Directed Retirement Account 401k. This type of retirement account is ideal for individuals who are self-employed or could prove activities that are categorized under self-employment. The Individual 401 k retirement plan offers a wide range of privileges to increase and grow your retirement savings. As long as you are eligible to establish an account, you are entitled to benefit from the upsides of the individual k retirement account for self-employed.

Why choose the Self-Directed Retirement Account 401k?

Also known as the 401k small business retirement plan, this account offers numerous features that could certainly realize your plans to invest and get huge profits from your ventures. Here are some of the top features of the Solo k retirement account ideal for independent contractors and other qualified individuals:

  • Checkbook Control – The plan participant is the trustee of his own account. This means that he can use and access his retirement money with the consent of a custodian. With the Checkbook Control feature, you can avoid other concerns such as custodial fees and heaps of documents and paperwork required to use your retirement savings. Using your retirement money is as convenient and fast as writing a check.
  • Borrow from the Plan – Loan option is one of the features of the Individual 401 k that is most attractive to plan participants. According to the rules of Self-Directed Retirement Account 401k, plan owners are entitled to loan money from their plan. The allowed loanable amount is $50,000 or 50% of the total plan value. Repayment terms are up to five years and at least quarterly with the lowest interest rate of Prime Rate + 1%.
  • Diversified Investment – You can use your retirement money to invest on a wide range of business ventures or fields of investment. Independent contractors such as real estate agents and brokers could use their funds to invest in real estate, mortgage notes, tax liens, tax deeds, rental properties and so much more. Other investment options include precious metals, stocks and bonds, and foreign currencies.
  • Tax Exemptions – This feature is quite viable with the Roth Solo 401k sub account rollover. Participants could choose to make after-tax contribution to avoid tax restrictions from their income or withdrawal.

You can multiply your retirement money with the Self-Directed Retirement Account 401k. The features of this retirement account are designed to help plan holders maximize their hard earned money and see the fruits of their hard work.

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