A lot of people are curious about the Private 401k Retirement Plan and are asking if it really delivers what it promises to plan owners. It is not unusual that people are skeptical about retirement plans nowadays due to countless scams and frauds in the industry. Thus, it is only fitting to ask if the retirement individual 401k plan is truly the real deal or not.
The Truth about the Private 401k Retirement Plan
The Solo 401k is an IRS-approved retirement account that offers a wide range of features for plan participants. Nevertheless, you can still be vulnerable against scams and frauds if you do not know how to screen the real deal from the fake. What then is the key to avoiding the scams?
Here are essential tips to protect you from getting conned in the retirement plan industry:
Select a Reputable Plan Provider
It is very important that you make the right choice from numerous self-directed 401k companies. The right plan provider has a clean and satisfactory record in the industry and among trusted and authorized agencies. You can also check reviews about the plan provider and feedbacks from their clients.
Be Sure you are Qualified
The first step to establishing the Private 401k Retirement Plan is to comply with the important eligibility requirements. For instance, you have to be self-employed or have activities of self-employment such as being an independent contractor or consultant. Small business owners are also eligible to establish the owner-only 401k as long as he/she has no hired full time employee in his/her company.
Are the Benefits Legitimate?
The Individual 401k retirement account offers a wide range of perks for qualified plan participants. Here are few of the upsides of the retirement plan:
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Easy Retirement Fund Access
– The Checkbook Control feature of the retirement account makes this privilege possible. Plan owners do not need custodian consent in order to access and use his retirement savings for investment. Retirement fund access is as stress-free as writing a check.
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Diversified Investment
– You can choose from a wide range of investment options such as precious metals, stocks, and bonds, real estate, and private businesses. Choose where you think you will have higher chances of earning and gaining profits from your retirement savings.
With the facts given about the Private 401k Retirement Plan, this retirement plan is fully approved and governed by the IRS. Establish an account with a reputable plan provider to make sure your plan is in compliance with the IRS rules and regulations.
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