The Solo 401 k small business retirement plan is the ideal investment for startup entrepreneurs. As an eligible participant, a small business owner enjoys numerous benefits with the Solo k retirement plan. The first and most important thing to ensure is that you choose and deal with the best 401 k plan administrator. Take note that not all plan providers are the same and equal. Some offers more comprehensive services than others. Some plan providers not only provide and help you establish the Individual k account. They also provide guidance fpr wealth-building using the 401 k plan.
Solo 401 k Small Business Retirement Plan in Details
Small business owners are qualified to establish the Self-Directed 401 k as long as they have no fulltime employees. The business owner and the spouse are the only allowed personnel to work full time in the company. The Solo 401 k small business retirement plan states that fulltime employees are those that render 1000 hours of work per year. Small business owners with no fulltime workers get numerous perks from the retirement account.
10 Times Higher Max 401 k Contribution Limit
One of the most appealing features of the Solo 401 k small business retirement plan is the significantly higher maximum contribution limit. The current max contribution is $18,000 for salary deferral and $53,000 for combined profit sharing and salary deferral electives. However, for plan participants that are 50 years old and older, a $6,000 catch-up contribution is allowed.
Checkbook Control
The Solo 401 k small business retirement plan allows plan holders to use their retirement funds for investment. On top of your business, you can venture into other investment fields. The real estate industry is one of the niches where earning opportunities are abundant. Use your retirement money to fund real estate investments such as raw lands, rental properties, and mortgage notes. There is no need for a custodian consent or related fee to invest your money.
Earning with Tax Breaks
The Solo 401 k small business retirement plan is a lucrative investment with tax breaks. Participants enjoy tax-free earning and withdrawal through making an after-tax contribution. The Solo k Roth sub account offers this particular privilege.
Small business owners will surely get more advantages from the Solo 401 k small business retirement plan. comply with the maximum contribution limit before the deadline and experience wealth-building activities with tax exemptions and more.
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