The self employed pension also known as the Solo 401k is an ideal retirement account if you want to use your retirement savings to fund multiple investments now or in the future. You can set up your pension plan with no less than the best plan provider, Sense Financial. Only seasoned and trusted plan administrators of retirement plans for small businesses could help you boost your retirement savings upfront.
Using Retirement Funds from the Self Employed Pension
Using your self employed 401k calculator, you can determine your maximum contribution on an annual basis. Know that the self employed pension is considered the highest, in fact ten times bigger than traditional retirement plans or SEP plans. Hence, plan owners may get to enjoy bigger retirement savings which they can use to invest on a particular industry or multiple businesses or industries at the same time.
It is essential to stay current and up to date when complying with your annual maximum contribution. The employee elective deferral is $17,500 for plan owners who are below 50 years of age. However, for qualified participants who are 50 years old and above, a catch up contribution of $5,500 is allowed. On the part of the employer, a profit sharing contribution is likewise allowed for the self employed pension. Businesses which are sole proprietorship or single member LLC in nature could contribute 20% while multi member LLC businesses could contribute up to 25%. Thus, inclusive of the profit sharing and catch up contribution, the annual maximum contribution for the Individual k retirement account is $57,500.
Flexible Investment Choices
Where can you put your hard-earned money for investment? The Solo 401 k retirement account from Sense Financial allows you to invest your money in real estate, precious metals, mortgage notes, tax liens, tax deeds, stocks and bonds, and foreign currencies, among others. This means you have plenty of choices where you can use your retirement savings to fund your investment to boost your retirement plan value and generate income without tax. This is possible if you make an after-tax contribution as featured through a Roth Solo 401k rollover.
Dependable and trustworthy plan providers such as Sense Financial could guide you on how you can maximize the self employed pension. You can enjoy tons of perks and benefits without the hassle of getting custodian consent and as easily as issuing a check through the Checkbook Control feature.