What Can You Do With A Solo 401k Plan?

Solo 401k is the most innovative qualified plan among others. Solo 401k rules even allow you borrow up to $50,000 for any purpose.

If you are one of those who would like to use your own knowledge and skills to make the most out of your investment opportunities, then perhaps, the Solo 401k plan is the best retirement plan for you. If you think you would do best in real estate investment or a private business, then you could invest your own retirement funds on these sectors. Not only that, you will also get a tax-free and penalty-free access to a loan amounting up to $50,000.

The Solo 401k plan is an Ultimate Qualified Retirement Plan created for self-employed individuals without any full-time employee working for them. Their business could actually be in any capacity and form, whether it is a corporation, a sole proprietorship, an LLC, a partnership, or even if the owner is working as an independent contractor.

Unlike conventional 401k plans, this plan permits small business owners or any self-employed person the capacity to make use of his or her own retirement savings to different investment opportunities. He or she may choose among assets such as real estate, businesses, tax liens and tax deeds, or precious metals without having the need of an approval from their designated custodian. And because it is a qualified plan, you will still enjoy tax-deferred benefits or even tax free gains from investing a Roth sub-account.

The investment choices and tax benefits are the main reasons that make Solo 401k plan so popular among real estate investors. Why invest in stocks and bonds, which you have little experience with, when you can put your rich experience in real estate to work and grow your retirement fund faster and more securely?

High contribution limits enables plan holders to take full advantage of tax deductible contributions which could reach up to $57,500 per year. This makes it possible to invest in real estate, which often requires higher capital upfront.

Among all plans approved by the IRS, this is the most innovative qualified plan that can be tailored to your financial needs. Solo 401k rules will even let you borrow an amount up to $50,000 for any purpose it may serve you, and to broaden the horizons of your retirement funds into include any form of investment, excluding only collectibles.