Advantages to a Solo 401k Plan

In today’s ever-changing economic landscape, small business owners and self-employed individuals are constantly searching for ways to maximize their financial futures. While most investors are familiar with traditional and Roth IRAs, very few are aware of another exceptional option – the Solo 401k.

Thanks to the Economic Growth and Tax Relief Reconciliation Act of 2001, forming and administering a Solo 401k has become easy and cost effective. You can take on the role of Trustee for your plan, making managing your investments simple. Think of it as investing with a Checkbook IRA, but without the need for a custodian and with numerous advantages.

Let’s explore the remarkable benefits that a Solo 401k offers compared to any IRA:

1. Make ROTH contributions.
2. Enjoy higher annual contribution limits.
3. No Unrelated Business Income Tax (UBIT) on leveraged Real Estate investments.
4. No need for a Custodian.
5. The freedom to invest in Life Insurance and S Corporation stock.
6. Borrow up to 50% of your 401k’s value, up to $50,000.

But is there any downside?

There are just a couple of things to keep in mind:

• If your total assets exceed $250,000, you’ll need to file a simple form (5500EZ).
• There are some administration costs involved.

So how do you get started?

It couldn’t be easier! Simply give us a call today, and we’ll guide you through three simple steps that stand 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 of your Solo 401k plan, you have the power to write a check for your next investment. As you can see, a Solo 401k offers a multitude of advantages over a Self-directed IRA.

Don’t wait any longer – call us today, 800-475-1031, to discover whether a Solo 401k is the perfect fit for you. Your financial future awaits!

The Guys With All The Answers…

David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site, we are here to help Investors get where they want to be. Call them today! 800-475-1031.