The Individual 401k maximum contribution is one of the highest in the industry. Compared to other traditional IRA accounts, the Solo k contribution maximum limit is almost ten times higher. You get to save a much larger amount and enjoy countless ways for financial growth. Wealth building opportunities are overflowing in today’s market. All you need is the money to fund your investment. Retirement investors see the lucrative returns using the Solo 401 k retirement money for investment ventures.
Facts about Higher Individual 401k Maximum Contribution
It is definitely true that establishing the 401 k Self-Directed retirement plan offers you wealth building options. Set up an Owner-Only 401k retirement account and enjoy the highest maximum contribution limit. Take note that traditional IRA accounts only allow up to $5,500 maximum contribution in an annual basis. The allowed catch-up contribution for these accounts is only $1,000. There is a huge difference with the Individual 401k maximum contribution. For instance, the retirement plan offers two types of contribution namely employee deferral and profit sharing. Plan participants need to elect the type of contribution they want to make. Plan owners only have until the 31st of December of the current year to choose their contribution elective.
The Individual 401k maximum contribution for employee or salary deferral is $18,000. The allowed catch up contribution for 50 year old or older participants is $6,000. This makes the total contribution limit for employee deferral elective $24,000. For the combined profit sharing and employee deferral, plan owners can make up to $59,000, including the catch up amount. In case the spouse of the plan participant makes the same contribution to the same plan, the Individual 401k maximum contribution is up to $118,000. This is a remarkably large amount that you can save and use to invest on various fields.
Investment in Real Estate
Plan owners get the chance to see their money grow through investing their retirement funds in real estate. The highest Individual 401k maximum contribution ensures sufficient savings in your retirement account. This asset or fund is usable especially for allowed investments. Real estate is one of the best niches where you can invest your retirement savings in. Use your money to invest in private lending, mortgage notes, trust and tax deeds, tax liens, rental properties, raw lands, and so much more.
The best place where you can put your hard earned money into is the Participant-Only 401 k. Enjoy the highest Individual 401k maximum contribution, large savings, and viable investment returns.
Related Keywords
. 401 k Self-Directed retirement plan
. Solo k contribution maximum limit
. Participant-Only 401 k