Owner Only 401k Plans are retirement plans approved by the IRS for qualified self-employed individuals or those with small scale businesses. Sense Financial LLC is one of the leading providers of this lucrative retirement account, which, when eligibility requisites are satisfied, could offer tons of upsides for the account holder. Moreover, there are no risks when adopting this retirement plan. Instead, account holders enjoy checkbook control 401k retirement withdrawal, which guarantees easy use of retirement funds for different types of investment.
Requirements For Owner Only 401k Plans
Sense Financial, an IRS approved financial institution and a trusted provider of Owner Only 401k plans, provides the necessary requirements applicants must comply before applying for the retirement account. According to financial experts, this retirement plan is ideal and suitable for businesses that do not hire full-time employees or employee which could be excluded from the plan coverage. This retirement account is the perfect plan for all individuals working as consultants, independent contractors or sole proprietors. It offers lots of benefits including the highest maximum contribution to 401k as of 2013 amounting to $56,500 for contributors above the age of 50 years.
There are two main eligibility requirements to adopt Owner Only 401k Plans. First, the applicant must prove the presence of self-employment activity and provide proof of the absence of full-time employees in his business. For instance, plan holders who have businesses must not have full-time employed workers excluding his partners or the owner himself. The spouse of the owner is likewise excluded and not considered a full-time employee. All business proprietors who could provide proofs of these two eligibility requirements are allowed to contribute to a solo 401k retirement plan.
Sense Financial experts further suggest and recommend that all account holders of the Owner Only 401k Plans must seek legal assistance to ensure the compliance of these eligibility requirements. Tax attorneys could provide help in the establishment of their solo 401k plan in accordance with the IRS guidelines. Furthermore, the retirement account could be customized according to the goals of the plan holder in terms of taxes, investment and retirement funds in general.
Account holders who are planning to purchase and invest in Owner Only 401k plans are recommended to confirm that their account is IRS approved. Some financial institutions such as Sense Financial LLC have the certified and licensed features to provide IRS pre-approved retirement plans to their clients with the IRS Letter of Determination.