The Solo 401 k contribution limits are the biggest in the retirement plan industry. Plan participants get to save a much bigger amount because of the high maximum annual limit. On top of the contribution, the retirement plan is also known for the 401k retirement investment. Wealth-building opportunities are limitless with the help of the Individual 401k especially with the help of trusted and established plan providers.
Details about the Solo 401 k Contribution Limits
According to the 401k Self-Directed retirement plan rules, the yearly contribution limit for the Solo 401 k retirement account mainly depends on the type of contribution elected. The employee deferral contribution for plan participants who are not older than 50 years of age is $18,000. For profit sharing contribution, the total maximum contribution is $53,000. For plan owners who are 50 years old and older, there is an additional $6,000 catch-up contribution allowed for the annual limit making employee deferral up to $24,000 and $59,000 for profit sharing elective.
Checkbook Control 401 k Benefit
Other than the Solo 401 k contribution limits that are 10 times higher than other retirement plans available, the Checkbook Control feature is another advantage. Plan owners are the trustees of their own retirement plan, thus there are no custodian consent or custodian fees necessary. You can use your retirement funds on investments as easy as writing a check. There is also no need for paperwork and documentation which is necessary if you have a third party custodian.
Loan Option and the Roth Solo 401k
The 401k plan participant can borrow money from their retirement account with the lowest Solo 401 k loan interest. Borrowers can repay the borrowed amount within 5 years at least on a quarterly basis and with the low Prime Rate + 1%. It is important to comply with the repayment obligation and not miss the deadline in order to avoid any taxable penalties.
Plan participants can also take advantage of the tax-free features especially of the Solo Roth 401k account. Other than the high Solo 401 k contribution limits, you can earn from the Solo k investment, and withdraw the contributed amount without any tax restrictions.
Make the most out of the high Solo 401 k contribution limits and enjoy a much higher retirement fund that you can use to invest on lucrative earning opportunities. Comply with the rules and enjoy the numerous Individual k benefits.
. Roth Solo 401k
. Solo 401 k loan interest
. Checkbook Control 401 k
. 401k retirement investment
. 401k Self-Directed retirement plan