The Roth Solo 401k Tax Benefits combines the advantages of a Solo 401k with the tax benefits of a Roth IRA. The tax advantages of the plan are powerful. The Roth Solo 401k offers tax free growth, tax free investing, and tax free transfer.
The Roth Solo 401k is an IRS-qualified plan that is funded by after tax dollars. It is a traditional 401k that has been simplified for the self-employed and small business owner. The self employment needed to qualify for the plan can occur on a part time basis and in conjunction with full-time employment elsewhere.
Roth Solo 401k Tax Benefits Offer Tax-free Growth
Funds within the Roth Solo 401k grow tax-free. The plan gives tax advantage during the growth and withdrawal of account funds. Participants can contribute up to $23,000 per year to the Roth Solo 401k, which grows tax free. Once the account has been held for five years and the participant reaches age 59 1/2, distributions can be taken from the account, tax-free.
The Roth Solo 401k enables tax-free investing into an unlimited array of options. Funds from the Roth Solo 401k can be invested in both traditional and non-traditional assets. Participants can use the account to invest in real estate, notes, private businesses, precious metals, to name a few.
The unlimited investment capability offers potential for true diversification of savings. Because the plan can be invested in a variety of assets, the health and growth of the account is not subject to one market. This gives greater security and growth potential for Roth Solo 401k funds.
The Roth Solo 401k is the best way to pass funds onto beneficiaries tax-free. The plan enables tax-free transfer of savings to children, spouse, and grandchildren. Beneficiaries receive tax-free use of the funds.
The Roth Solo 401k tax benefits include: tax-free growth, tax-free investing, and tax-free transfer. The powerful tax advantages of the plan make it worth considering. Contact one of our specialists today for a free consultation.