The Solo401k retirement plan is one of the retirement accounts for self employed individuals who want to see their hard-earned money go to the right place for future use. Setting up an account with reputable plan providers such as Sense Financial is the first step to enjoy the numerous perks of this pension plan. Only reputable companies offering the Individual k plan could help you maximize your retirement account and skyrocket your earnings like no other.
Tips on Setting Up the
There are numerous self employed 401k rules you need to comply with if you want to set up and establish the Self-Directed 401 k pension plan hassle free. Here are some of the important and effective tips to help you start up your lucrative investment for your financially secured and productive future:
- Make Sure You’re Eligible – The first thing to do is to ensure that you are fully qualified to establish the Solo401k. First, you need to prove that you have self-employment activities such as working as an independent contractor or consultant. Although you may have a fulltime job, you must show proof that you are working as self-employed on the side. Second, you need to prove that you are an owner of a small business without any fulltime employees working for you but with the exemption which is you and your spouse.
- Stay Current on your Annual Contribution – The secret to enjoying the many perks of the Owner-Only pension plan is to make sure you comply with the annual maximum contribution and don’t fail to contribute on the deadline. The maximum contribution on a yearly basis is $57,500 all in all, inclusive of the 20%-25% profit sharing contribution and the $5,500 catch up contribution allowable for plan owners 50 years old and above.
The Perks of the Solo401k Plan
The Solo401k is a highly recommended pension plan because it allows you to use your retirement savings for investment. Thus, you can watch your money grow and double up the value of your retirement plan tax-free if you choose to rollover your account to the Roth Solo 401k. You can enjoy the Checkbook Control feature giving you access to your money as easily as writing a check.
Check out some of the other best features of the Solo401k such as the loan option and flexible investment fields. Find a dependable plan provider to help you from setting up the account to earning big time.