The Solo Roth 401 k is one of the best features of the Solo 401 k plan. Plan participants could roll over their account to the Roth 401 k account in order to enjoy its numerous features and upsides. The retirement plan via the Solo Roth 401 k account gets its fund through after-tax contributions. This type of contribution basically means getting tax-free growth for the retirement plan through tax-free investments. During retirement, plan participants could also experience tax-free withdrawals on income generated through their Individual k investment.
Advantages of the Solo Roth 401 k in Detail
Due to the combined benefits of the Solo k with the tax breaks of the Roth IRA, the Solo Roth 401 k is indeed a dream come true for most plan owners. Experts agree that this account for the Self-Directed 401 k offers numerous advantages for plan participants in their quest for wealth-building through their retirement funds.
Here are some of the upsides of the Solo Roth 401 k:
Investment Options Have Almost No Limits
Through the Roth Solo k account, participants can invest in traditional as well as non-traditional assets without the burdens of tax restrictions. Plan owners have unlimited investment potentials thus leading to diversification of their retirement funds. The Solo Roth 401 k investment includes real estate, precious metals, private businesses, mortgage notes, tax deeds, tax liens, and so much more. Take note that all returns and gains from the investments return to the Solo k, tax free.
High 401 k Contribution Limits
Plan owners can fund their retirement plan and enjoy high contribution limits on a yearly basis. Participants who elected an employee deferral contribution could contribute up to $24,000, inclusive of the $6,000 catch-up contribution for those who are 50 year old and older. The Solo Roth 401 k profit sharing maximum contribution on the other hand is up to $59,000.
One of the best things about the Individual k retirement plan is that it allows plan owners to be their own trustee. This means you don’t need any custodian consent if you want to access your retirement funds. Investing your retirement money is as easy as issuing a check.
The Solo Roth 401 k gives you numerous ways to build your wealth through borrowing from your retirement savings. Best of all, it generates income and brings it back to your retirement plan without tax obligations.
- Solo 401 k plan
- 401 k contribution limits
- Roth ira
- self directed retirement accounts
- Individual 401k