The Self-Directed Solo 401 k is considered one of the most lucrative and innovative among retirement plans that are IRS-approved. The retirement account offers the most tax-free and tax-deductible advantage compared to other Traditional or SEP IRA plans. One of the privileges of account owners is that they can take out a loan which is 50% of their total plan value or up to $50,000. It also offers Checkbook Control administration where plan participants can access and use their retirement money as easy as writing a personal check.
Eligibility for the Self-Directed Solo 401 k
Only qualified individuals are allowed to establish the Solo k retirement account. Eligible plan participants are those that can prove their self-employment activities. The self-employed Individual 401 k retirement plan is for qualified individuals who work as independent contractors or consultants. Self-employment activities may go hand in hand with retaining your fulltime job, as long as you can prove that you have funds coming from your self-employed source of income.
The Participant Only 401 k retirement account is the best Owner-Only 401k for small businesses. Small business owners are those that have no fulltime employees working for their company with the exemption of the owner and his spouse. Fulltime employees are those that render work hours that exceed a rate of 1,000 hours per year.
Top Reasons why the Qualified 401 k is Recommended
The Self-Directed Solo 401 k is a highly recommended retirement plan because plan participants have numerous options on how they can boost their retirement money. Your retirement savings do not stay stagnant because you can engage in wealth-building investments such as in real estate. It takes the Solo 401k retirement policy and the help of the best and reputable 401k retirement plan provider to see your money grow. Trusted plan providers guide and facilitate investment for their plan participants so that they can use their retirement funds for profitable investments. Other investment opportunities include precious metal, stocks and bonds, hard money lending, and private businesses.
The Self-Directed Solo 401 k is a remarkable option to invest your hard earned money in something lucrative and productive. The Qualified 401 k also allows after-tax contributions that entitle plan owners to invest, earn, and withdraw from their retirement savings without any tax restrictions. The 401 k maximum contribution is 10 times higher than traditional plans, allowing plan participants to enjoy huge retirement savings in the long haul.
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