It is easy to earn and get the most out of your retirement plan with the 401 k Roth account tax privileges. Making an after-tax contribution can be more lucrative and beneficial in the long run. Although rolling over to the Roth qualified 401 k retirement account does not necessarily gives you tax perks upfront, the consequential benefits are remarkable. Plan participants can choose to make an after-tax contribution in order to enjoy tax-free earning, tax-free withdrawal, and so much more.
More Perks with the 401 k Roth Account
The Roth Solo k account offers one of the highest up-to-date 401 k plan contribution limits. Unlike IRA accounts that only offer up to $5,500 maximum contribution, the small business owner Self-Directed 401 k offers up to $59,000. There are two types of contribution you can make namely the salary deferral and profit sharing electives. For the salary deferral contribution, the total contribution limit is $18,000. A total of $24,000 is the maximum amount for those that are allowed to make catch-up contributions of $6,000. The maximum salary deferral of $24,000 can be put into the Roth account as after-tax contributions.
For the combined salary deferral and profit sharing contribution, plan owners can make up to $53,000. Plan participants that are 50 years old and older can make up to $59,000. Furthermore, if the plan owner’s spouse also makes the same contribution to the same account, the total contribution limit is up to $118,000.
Plan participants get to enjoy their tax-free perks from the 401 k Roth account through diversified investment. Use your retirement money to invest on various fields such as real estate. This is one of the most promising niches where plan participants can invest on mortgage notes, tax deeds, tax liens, rental properties, raw lands, and many others. The earnings and profits you acquire from your real estate investment flows back to your retirement funds, tax-free. You can also make tax-free withdrawal if you choose to use your funds again for more wealth building activities.
Low Cost Administration
The 401 k Roth account tax perks are not the only benefit you can enjoy from the retirement plan. You experience easy administration of your account that does not need custodian consent and incurring custodian charges and costs. The 401 k Roth account makes it easy, simple, and hassle-free to manage your retirement money.
With the 401 k Roth account, your retirement investments take a whole new turn with the absence of tax restrictions. Learn more and start building your wealth today!
. Up-to-date 401 k plan contribution limits
. Small business owner self-directed 401 k
. Qualified 401k retirement account