The Solo 401k Roth Sub Account is a powerful solution if you want tax-free financial growth, investment, and withdrawal. Rollover to this type of sub account in the Solo k retirement plan is a way to avoid any burdening tax obligations and restrictions. Finding a reputable and trusted self-directed 401 plan provider is the key to enjoying the perks of the Solo 401 k retirement plan such as its tax-free option.
What is the Solo 401k Roth Sub Account?
In a nutshell, the Roth sub account of the Individual k retirement plan combines the features and advantages of the ROTH IRA and the Owner-Only 401k. The account is basically funded with after-tax contributions which means that you also gain tax-free investments, growth and withdrawal. Although there are no tax breaks upfront, the rollover to this sub account provides tax exemptions and privileges in the long run.
High Contribution Limits
According to the qualified 401k retirement plan rules, the maximum contribution limit in after-tax dollars is $24,000 in an annual basis. This is the updated 2015 contribution limit and considered much higher compared to the $6,500 yearly maximum contribution for the ROTH IRA. With higher maximum contribution, participants could have larger savings of tax-free money which could be invested, grown, and diversified. Retirement funds from the Solo 401k Roth Sub Account are tax-free and secured sources of income.
Investment Choices
Retirement money funded with the Roth sub account could be used for invent in traditional as well as non-traditional assets. Plan participants could see their money grow in a significantly exponential value without tax restrictions. You can invest your money and gain tax-free in:
- Mortgage Notes
- Tax Liens
- Tax Deeds
- Real Estate
- Precious Metals
- Private Business
Low Cost Administration
The Checkbook Control feature of the self-directed 401k makes the retirement plan low cost and much simpler to administrate. Accessing and using your retirement funds for investment does not include or require custodian consent. Thus, you are also free from any delays, paperwork, and additional fees.
Sub Account Loan Feature
The Solo k Roth sub account also entitles participants to borrow up to $50,000 or 50 percent of the overall account value. Borrowed amount is usable for paying off personal debts, tuition fees, student loans or investing in startup business. This is an advantage over a Roth IRA, which does not permit any borrowing.
With the help of the Solo 401k Roth Sub Account, you can maximize your retirement money and enjoy the added perks of tax exemption.
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