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!
- Your new Solo 401(k) plan is created
- Establish a bank account in your new plan’s name.
- 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.
