Self-directed Retirement Plan 401k – Viable Features and Upsides

Self-directed Retirement Plan 401k

Self-directed Retirement Plan 401k

The Self-directed retirement plan 401k offers a wide array of benefits for plan participants. Unlike other pension plans in the market, the Solo 401k allows remarkable features that could help you maximize your retirement savings. You don’t need to wait for your retirement years to happen before you can make that valuable investment. The best time to set up an individual k self-direct plan is now.

What are the features of the Self-directed retirement plan 401k?

One of the most important questions to answer is on what the most appealing and viable features of the Individual k plan are. Here are the reasons why you must establish the self-directed 401k retirement account today:

  • Checkbook Control. This feature is one of the many reasons why more and more account holders are opening the single participant 401k. With the Checkbook Control feature, the plan owner is the very own trustee of his account. Thus, he/she has total control over this plan fund and asset. There is no need for a custodian consent if you want to use your retirement savings for qualified transactions and investment. Accessing your retirement fund is as hassle-free as signing a check.
  • High Maximum Contribution. Having a high maximum contribution means the chance of boosting your retirement earnings. The annual maximum contribution for the Individual 401 k plan is $59,000 including profit sharing component for participants 50 years old and older. This amount is almost ten times bigger than the conventional IRAs.
  • Tax-Free Investment. If you opted for a Roth Solo 401 sub account, you are sure to enjoy tax-free withdrawal, earnings, and growth. You can absolutely use your retirement savings on investments and whatever income is incurred would have no tax obligation under this account. The Roth 401k account allows after-tax contribution and therefore, tax-free earnings.
  • Loan Options. According to IRC Section 72(p), plan owners are allowed to borrow money from the self-directed retirement plan 401k. You can loan as much as $50,000 or 50 percent of the total plan value. Repayment terms of the plan are designed for the convenience of the participant. For instance, you can repay in a span of 5 years with a low interest rate.

The countless benefits of the Self-directed retirement plan 401k are reasons to motivate you to seriously consider this way of securing your retirement. There are numerous plan providers to help you establish an account and reap the fruits of your investment.

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