Solo 401k Contribution Limits Can Give You the Largest Tax Benefit
As a tax consultant at Robert Hall & Associates, Tony Watson emphasizes the importance of proper planning. Tony explains how Solo 401k contribution limits can give you the largest tax benefits known within the tax code. Self Directed Solo 401k and Self Directed IRA, he said, are great ways to shelter real estate and save on taxes.
Self Directed Solo 401k and Self Directed IRA are the main services that Sense Financial offers. Over the years, Sense Financial has helped hundreds of clients grow their retirement funds in innovative ways. Not only Self Directed Solo 401k and Self Directed IRA offers great tax benefits as Tony explained, they also benefit account holders in many ways.
Many benefits besides high Solo 401k contribution limits
First of all, both plans can be self directed, which offers checkbook control and no custodian required. Therefore, plan participants can now take full control of their retirement future and make investment decisions on their own. No custodian means no waiting for approval and absolute power over the fund. Also, plan participants can save on custodian fees, which can get costly with frequent transactions. Instead of spending on costs and fees, the money can be invested and produce returns instead.
Solo 401k contribution limits are among the highest of qualified plans, and that gives investors the power to put away more money to invest. Not only that, their investment choices are now expanded to include the widest range of investment classes, from real estate to precious metals, from notes to private businesses. Account holders of both Self Directed IRA and Solo 401k can now venture to any investment options of their choices.
Watch the video to hear what Tony has to say about Solo 401k contribution limits and its benefits to investors.
To learn more please give us a call at (949) 228-9394 or request a free consultation today!
Barbara Armstrong
August 12, 2014 @ 9:48 pm
Re:Roth solo 401k,
Can I contribute to this account if I work as an INDEPENDENT CONTRACTOR?
Does this have check book control?
Must I start taking distributions at a certain age or is it like a Roth IRA where distributions are never necessary in my lifetime?
I have an opportunity to start working as an independent contractor and choosing to do so will be dependent on the answers to these questions.
Thank you,
Barbara Armstrong
Admin
August 12, 2014 @ 10:48 pm
Barbara, yes, the Solo 401k plan is designed specifically for independent contractors. The plans we set up are self-directed, trustee-managed and does come with the checkbook control.
The required minimum distributions are begin at the age 70½. If you wish, you can convert it into Roth IRA which will not be subject to RMD.
Based on our discussion before you can take advantage of this plan.
Tom
August 19, 2014 @ 7:43 am
I am an employee of a school and would like to invest in real estate (when I can get a loan again–had foreclosure a year ago). Is a 401K with checkbook good for me or something else? Thank you.
Admin
August 20, 2014 @ 2:03 am
Tom, the fact that you personally had a foreclosure has very little to no effect on your investing with the 401k. I think you are mixing the two.
Solo 401k is a self directed retirement account which allows you invest your retirement funds into non-traditional investments such as real estate. But the funds must only be used for investment purposes, you are not allowed to buy residence.
Feel free to contact us to get better educated on this subject.