The self-employed IRA retirement plan particularly the Self-Directed 401 k is an ideal investment for eligible plan participants. The Individual 401k offers a wide range of benefits from the highest Solo 401 k contribution limits to the lowest Solo 401k loan tax. Before you can enjoy the countless perks of the Solo 401k retirement plan, make sure you are eligible to establish an account.
Who qualifies for the self-employed IRA?
As the name implies, eligible individuals for the self-employed IRA are those that can provide proof of self-employment activities. A plan participant can still keep his fulltime day job as long as he can prove his side business activities that can qualify him as self-employed. Self-employed individuals are those that work as consultants, independent contractors, and those that have part-time income generating sources that can also be in tandem with their fulltime employment. Ownership or operation of LLC or Limited Liability Companies or sole proprietorship businesses are likewise considered self-employed.
The self-employed IRA is also a small business 401 k retirement plan. Eligible plan participants are owners of small businesses without fulltime employees. The only exemption for this rule is attributed to the business owner and his spouse. According to the rules of the Owner-Only 401 k retirement account, employees that are excluded from the plan coverage are those under 21 years of age, union employees, alien or non-resident employees, and employees with less than 1,000 hours a year working time.
Benefits of Qualified Plan Participants
Plan owners of the self-employed IRA or the Solo k retirement plan enjoy numerous perks such as the Checkbook Control feature. The retirement plan allows plan owners to be their own plan trustee, giving them the full authority over their assets and retirement funds. The Checkbook Control feature makes the Participant-Only 401 k plan easier to use without consent and additional charges due to third party custodians. Plan owners also have unlimited investment options for wealth-building including real estate, precious metals, and stocks and bonds. This type of retirement plan offers tax-free options especially with the Solo Roth 401 k rollover.
Self-employed individuals and small business owners have the best retirement investment option with the Solo k self-employed IRA. Establishing the Individual k retirement account is your first step towards saving your hard-earned money and using it for income generation. Enjoy tax-free investment and profit with the right use of the retirement plan for self-employed individuals today.
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