Finding a reputable Solo 401 k plan provider is an important task to undergo. The Individual self-directed 401k is a retirement plan option ideal for self-employed individuals and small business owners. Those who want to invest their hard-earned money on lucrative and viable investments need to look deeper into this type of retirement plan. In the current market, there are plenty of plan administrators offering the single-participant 401k. However, it is important to note that not all these plan providers have your best interest in mind.
What to search for in a Solo 401 k plan provider?
Look for that provider that offers the following:
- Full Administrative Assistance – From establishing to maximizing the full potentials of the self-directed 401k retirement plan, your provider must provide all necessary assistance. Look for a plan provider that facilitates the process of establishing the pension plan for you, explain the rules and help you avoid prohibited transactions.
- Established Reputation – The plan administrator must have untarnished and proven reputation. You can know more about this through the testimonials and feedback of their clients. The Better Business Bureau could also provide salient information and track record regarding the company you want to hire for the Individual 401 k.
- Years of Service – Choose a plan provider that has years of operations in the industry. The longer they have been in the business, the more expertise and credibility they have already established.
Best Features of the Self-Directed 401k
As one of the top retirement plans for small business and self-employed individuals, the Solo 401 k single-participant plan offers the following features:
- Roth Sub Account – Plan owners could opt for a sub account with Roth features. The plan allows them to make after-tax contribution meaning no income restrictions applied.
- Flexible Investment Options – Account holders could use their retirement money on a wide array of investment options. They can invest in real estate, precious metal, hard money lending, foreign currencies and many others.
- Checkbook Control – With this feature, the plan owner has easy access and control over his retirement money. Investing your retirement savings is as fast as signing a check. Moreover, there is no custodian consent necessary as the owner is the trustee of the retirement plan.
With a reliable Solo 401 k plan provider, maximizing the full potentials and reaping the fruits of the Individual 401 k plan is possible. Finding the right plan provider is a must.
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