The Qualified Plan 401 k is today’s popular retirement plan for self-employed. It offers some of the best perks for plan participants especially with the trusted 401k plan provider. There are various advantages of setting up the Individual k plan. One of the most appealing features of the retirement plan is the Self-directed 401 k contribution limits. With this retirement account, plan owners can make large contributions that total almost ten times higher than IRA accounts. Traditional IRA plans allow up to $5,500 maximum contribution with $1,000 catch up amount.
Why the popular retirement plan for self-employed?
The One-Participant 401k account offers one of the largest maximum contributions among qualified retirement plans. The updated maximum contribution is $59,000 in combined employee deferral and profit sharing electives. The self directed Solo k is the popular retirement plan for self-employed that allows plan participants to make diversified investments as well. Plan owners can see their money grow through investing in various fields. Real estate is one of the best options for investment using your retirement funds. The niche offers tangible assets that are easy to control and manage. Thus, real estate is more appealing for retirement investors compared to the stock market where asset control is mostly not possible.
The Checkbook Control Benefit
The popular retirement plan for self-employed is also highly recommended and preferred because of its Checkbook Control feature. Plan owners have the ability to make investments particularly in real estate and non-traditional assets. This is possible only in the self-directed Solo 401 k plan since only self-directed plans allow this type of investment. Moreover, the Checkbook Control benefit lets you invest without the need for third party custodian approval. The plan participant is the trustee of his own account. Checkbook Control gives the Individual k a low cost administration privilege. There are no delays as well as heaps of paperwork. Plan owners can also save on related custodial fees and charges. Most importantly, plan owners have total control over their account. You can use your retirement funds as easy as wiring money or writing a check.
The Answer for Self-Employed Individuals
Self-employed individuals are highly qualified to establish the Owner-Only 401 k retirement account. It is a remarkable investment option for those eligible to set up an account. Self-employed persons are those that work as freelancers, independent contractors, and consultants.
The Solo 401k is indeed a popular retirement plan for self-employed. It offers many benefits that other traditional IRA accounts could never deliver.
. Self-Directed 401 k contribution limits
. Trusted 401k plan provider
. Qualified Plan 401 k