There are two Individual 401 k retirement plan qualifications that include freelancers in the eligible group. Freelance workers are highly qualified for the Solo 401 k retirement plan as self-employed individuals. In order to establish the retirement account, you only need to present proof of your self-employment activities.
Individual 401 k Retirement Plan Qualifications FAQs
One of the main concerns of plan applicants is having a fulltime job. Are you automatically disqualified if you have a fulltime employment? You can still pass the Individual 401 k retirement plan qualifications as a self-employed individual despite working full time. It doesn’t matter if you have another fulltime job as long as you can prove that you have income from a self-employment activity. For example, you can work fulltime as an employee in a company while working as an independent contractor or a freelancer.
Another important requirement in the Individual 401 k retirement plan qualifications is small business ownership. You are also eligible to establish an account if you can prove that you have a small business. Small businesses are companies that have no fulltime employees except the owner and the spouse. Take note that fulltime employees render 1000 hours a year or more for the company.
Exciting Perks for Freelancers
Establishing the Participant Only retirement plan for freelancers is a lucrative investment. With the right plan provider, you can borrow from the Self-directed 401 k. It is important to remember that not all plan providers allow the Solo 401 k loan option. Thus, choose the right plan administrator that offers this option before signing on the dotted lines.
If you pass the Individual 401 k retirement plan qualifications, you can also explore numerous wealth-building opportunities. The real estate 401 k investment is one of the top choices where you can invest your retirement money for future earning that flows back to your retirement savings. Freelancers can fund their real estate investment using the 401 k retirement funds to purchase mortgage notes, raw lands, tax liens and tax deeds, and rental properties.
It is not difficult to become eligible and comply with the Individual 401 k retirement plan qualifications. You can submit your documents to the plan provider and they will help facilitate the establishment of your retirement account. Some of the establishment services you can get from the right plan provider include the Adoption Agreement, Trust Agreement, Appointment of Trustee, Basic Plan Document and EGTRRA Amendment.
. Borrow from the Self-Directed 401 k
. Solo 401 k loan
. real estate 401 k investment