With the small business owner self-directed 401 k, plan owners get to enjoy numerous privileges. The Solo 401 k best retirement plan is a highly preferred account for retirement investors. It offers a wide range of benefits particularly for diversified investment and earning. The first step into establishing the lucrative account is through choosing the best plan provider. Not all 401k Participant-Only account providers are the same. Some have numerous restrictions while others allow easy administration and management of your retirement plan.
The Small Business Owner Self-Directed 401 k Up Close
Entrepreneurs with small-scale businesses are highly eligible for the Qualified 401k plan. The retirement account is open for small business owners that have no full time employees working in their company. The business owner and the owner’s spouse are the only exemptions to the rule. Based on the IRS description, full time employees are those that render 1000 or more working hours per year to the company. Small-scale entrepreneurs diversify their investments with the help of the Individual k retirement plan. For instance, plan owners can use their retirement money to invest in other fields such as real estate, precious metals, stocks and bonds, and hard money lending. It is essential to know the “Prohibited Transactions” where you must never use your retirement funds into. Prohibited transactions result to tax charges and other penalties, including disqualification of the plan in severe cases.
Must-Know Facts about the Solo k
The small business owner self-directed 401 k offers a higher contribution limit which is 10 times higher than traditional IRA accounts. Traditional IRA plans usually allow up to $5,500 maximum contribution with only $1,000 catch up for participants over 50 years old. The Self-Directed 401 k retirement account, on the other hand, allows up to $59,000 combined contribution limit. The catch-up contribution for plan participants that are 50 years old or older is $6,000. The bigger your maximum contribution limit is, the faster your retirement funds and savings can grow. On top of that, the small business owner self-directed 401 k also offers the Checkbook Control feature. Plan owners are the trustee of their own account. this eliminates the role of third party custodian, custodian consent, and custodian charges.
With the overflowing advantages of the small business owner self-directed 401 k, you are 100% sure that you will be enjoying financial growth and stability. Learn more about the 401 k qualified retirement plan and see the best investment options that work.
. Solo 401 k best retirement plan
. 401k Participant-Only account
. Qualified 401k Plan