For small business owners, wise financial planning starts with the establishment of the 401 k Self-Directed retirement plan. Plan participants can enjoy financial growth through diversified investment options. The first step to establish the Solo 401 k is to find the right and reliable plan provider. Take note that not all plan administrators are equal in terms of services. For instance, one plan provider Individual 401k may allow loan options while others do not. Thus, make sure you first checked with the plan provider before signing on the dotted lines.
How the 401 k Self-Directed retirement plan makes your finances grow?
With diversified investment opportunities, making your money grow is a reality with the 401 k. One of the most popular options is the best 401 k real estate investment. Plan owners see the lucrative and huge return on investment in the real estate niche. You can basically invest your retirement money on numerous fields in the real estate industry. Investment options usually include raw lands, rental properties, tax liens, tax deeds, mortgage notes, and others.
On top of the real estate investment, plan participants can also utilize the 401 k Self-Directed retirement plan funds in precious metals, stocks and bonds, and foreign currencies. Hard money lending is also a viable investment field to explore. It is very important to always remember that there are Prohibited Transactions in using the 401 k retirement money. A dependable and experienced plan provider helps you avoid making these types of transaction. Prohibited transactions result in tax charges and fines that could negate your earning objectives.
Are you eligible?
Know the 2 most important eligibility requirements in order to set up the Qualified 401k plan. You must provide proof that you are a small business owner with no full time employees. The plan owner and their spouse are the only ones that are exempted to this rule. Furthermore, the 401k retirement plan is offered to self-employed individuals such as consultants and independent contractors. Freelancers are also considered self-employed. Self-employment activities do not mean you can’t have another fulltime job. As long as you can prove your source of self-employment income, you are qualified for the retirement account.
The 401 k Self-Directed retirement plan delivers numerous privileges that traditional and other IRA accounts could not. It makes life more productive for retirement investors especially in terms of financial growth and stability. Learn more about the Participant-Only 401 k retirement account today!
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