Solo-Owner 401k Tax Loophole Saves Small Business Owners Millions

Entrepreneurs and small business owners can save millions in taxes by using a tax loophole created with the new solo-owner 401(k). Retirement experts of Lamaute Capital, Inc. explain on www.investsafe.com how by using this loophole any person with a business can tap their retirement money tax-free and penalty free.

Alexandria, VA --

Entrepreneurs and small business owners can save millions in taxes by using a tax loophole created with the new solo-owner 401(k). Retirement experts of Lamaute Capital, Inc. explain on www.investsafe.com how by using this loophole any person with a business can tap their retirement money tax-free and penalty free.

Small business owners can transfer funds from their IRAs or other retirement accounts into a solo-owner 401(k) plan. They can then borrow up to $50,000 or 50% of their 401(k) balance tax-free because a loan from a 401(k) is not treated as a distribution by the IRS.

The IRS requires a 20 percent tax withholding from IRAs or other retirement account distributions as a downpayment toward your total tax bill. An additional 10 percent tax penalty is generally imposed if you are younger than age 59½.

This option allowing small business owners to borrow tax free from a 401(k) plan was not available prior to 2002", says Daniel Lamaute, Chairman of Lamaute Capital, an investment firm specializing in retirement plan. With the solo-owner 401(k) you can continue to contribute to your retirement plan. But, if you need it, you can also borrow your money tax-free", says Lamaute.

Any person who owns a business with no employees can set-up a solo-owner 401k. This includes independent contractors, sole proprietors, partnerships, LLCs, C corporations, and S corporations.

Each year, millions of Americans finance their businesses by cashing out their 401(k)s or by raiding their IRAs. , these entrepreneurs pay millions in taxes and penalties that they can avoid if they set up solo-owner 401(k)s and borrowing tax-free from these new plans, according to information on ww.InvestSafe.com.

In 2000, workers took cash distributions of over $24 billion from their 401(k)s when they left their job. And, roughly 8 percent of workers, or 13.5 million people started businesses last year, according to recent studies.

Unfortunately, it is mostly the little guys who can least afford the tax hit on their retirement savings who take the cash distributions. By letting this group, which includes many small business entrepreneurs, know about the new solo-owner 401(k), we hope to save them millions in taxes" says Lamaute.

To learn more about the new Solo-Owner 401 (k) plan visit

http://www.investsafe.com/financing.html

For Additional Information, Please Contact:

Daniel Lamaute

Lamaute Capital, Inc.

http://www.InvestSafe.com

800-655-5795

Daniel@lamautecapital.com