With the Solo 401 k retirement plan savings, you can absolutely secure your finances especially when you reach your golden years. However, the best time to start and establish the Individual k retirement plan is now. There are numerous features that this retirement account could offer especially for wealth-building ventures. Investment using your retirement money for income and earnings is a lucrative option with the 401k retirement plan for qualified self employed individuals.
How to Boost the Solo 401 k Retirement Plan Savings
There are numerous ways on how to make sure your retirement money grows especially with the Single Participant 401 k. Here are some of the best ways to maximize your retirement savings:
- The Individual 401k retirement plan allows plan participants to access and use their savings for qualified investment. There are numerous options to choose from including real estate such as rental properties, single detached homes, and multi-family units. You can also invest on mortgage notes, tax liens, tax deeds, and precious metals.
- Timely and prompt contribution to the plan boosts the Solo 401 k retirement plan savings. It is imperative to know your maximum contribution limits and deadlines. As of 2015, the maximum contribution for profit sharing component is $59,000 applicable to plan owners 50 years old and older. The deadline of election of the contribution type the participant prefers to make is the 31st of December of the current year.
- In order to maximize the full potentials of your plan and avoid any sanctions and penalties, make sure you comply with the rules. For instance, avoid getting into prohibited transactions as stated in IRC Section 4975. Prohibited transactions using the Self-directed 401k retirement plan are subject to fines and charges. An example is using a recourse loan with the retirement funds when financing a real estate property for your investment.
Benefits and Upsides
There are remarkable advantages with the self-directed retirement account for small businesses. It offers a Checkbook Control feature that allows total control and access over your assets. It has loan options with convenient repayment terms in case you need the money for urgent situations. The Solo k account also has one of the highest maximum contribution limits in the industry.
One of the best ways to securing your financial future is through boosting the Solo 401 k retirement plan savings. The right guidance from your plan provider and wise use of your retirement funds are your first steps to success.
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