Great 401k Investments: The Advantage Solo 401k

If you are a small business owner or self-employed individual without any employees other than a spouse you should consider a Solo 401(k) plan. Most investors are familiar with IRAs whether speaking of traditional or ROTH yet few are aware of another great option; the Solo 401(k).

The Economic Growth and Tax Relief Reconciliation Act of 2001 made forming and administering a Solo 401(k) easy and cost effective. You can be the Trustee of the plan. Making investments is as simple as investing with a Checkbook IRA though without the need of a custodian and with a variety of advantages…

Consider the following advantages of a Solo 401k over any IRA:

  • Can make ROTH contributions
  • Increased annual contributions
  • No UBIT on leveraged Real Estate
  • No Custodian required
  • Can invest in Life Insurance and “S” Corporation stock
  • Borrow 50% of the 401(k)’s value up to $50,000

Is there a Downside?

  • A 5500EZ needs to be filed if the total assets exceed $250,000
  • There are some administration costs

How Do I Get Started?
Simply call us today and we will get you started. There is only three steps
between your current retirement plan and the investments of your
choosing!

  1. Your new Solo 401(k) plan is created
  2. Establish a bank account in your new plan’s name.
  3. Fund the plan’s new checking account via rollover or new contribution.

As Trustee, you write a check for the plan’s next investment! As you can see, the Solo 401(k) has many advantages over a Self-directed IRA. Call us today to see whether a Solo 401(k) is right for you.