With the economy in a roller coaster state every now and then, it is wiser and more practical to invest your money in the right places. With Sense Financial and the Solo 401 k retirement plan, your golden years are guaranteed safe, stable and more productive than ever. Hence, it is imperative to learn more about this type of retirement policy along with its fundamental requirements, benefits and the 4o1 k limit.
What is the Individual 401 k retirement plan?
This type of retirement policy is basically known for its flexible and lucrative investment options. It means you can easily use your retirement savings on very important and productive options where you can invest your money to see it grow. Moreover, in cases when you need to make sure that your financial concerns are covered, your retirement funds could be an accessible option to use. That’s because of the Checkbook Control feature of the 401k Solo retirement policy. Using your retirement funds is as easy and hassle-free as issuing and writing a check.
What is the 401 k limit?
401k limits usually refers to the maximum contribution or the 401 k limit. For policy owners who are below the age of 50 years, the annual required contribution is $17,500. On the other hand, plan holders who are 50 years of age and older could boost their contribution to a maximum of $23,000 per annum. That’s because they are entitled to making an additional $5,500 catch-up contribution. All in all, the value of $23,000 is a much higher amount compared to other retirement plans today, statistics and experts ensure. For the profit sharing component of the plan, plan owners could contribute up to $56,500 maximum including the catch-up addition.
Benefits of the 401k Loans
Unlike an IRA, the Solo 401 k plan has a loan feature where the plan owner could borrow from his account. This is not an encouraged feature, however, in times of dire needs and financial crisis, the Individual 401 k policy is an accessible option. You can certainly borrow from your plan and use your retirement funds to pay debts, bills or start up your own business. Moreover, you don’t need a custodian when you borrow or use your retirement funds and no heaps of paperwork to comply with before you can get hold of your money.
The Solo 401 k retirement plan is indeed a remarkable option for financial purposes and stability with highly lucrative 401 k limit.