Small Business Owners Can Avoid Taxes and Penalties With a Self-Employed 401K

Thanks to the Economic Growth and Tax Relief Reconciliation Act of 2001, small businesses - whose only employee is the owner or the owner and spouse - can open and contribute to a Self-Employed 401K plan. Finally. A great tax break strictly geared to benefit the smallest business owners. On top of the tax break, the Self-Employed 401K offers other benefits for cash-strapped small business owners.

Thanks to the Economic Growth and Tax Relief Reconciliation
Act of 2001, small businesses - whose only employee is the
owner or the owner and spouse - can open and contribute to
a Self-Employed 401K plan. Finally. A great tax break strictly
geared to benefit the smallest business owners. On top of the
tax break, the Self-Employed 401K offers other benefits for
cash-strapped small business owners.

"Rather than raiding their 401K to keep the business alive -
and paying a big penalty to the IRS - small business owners
can take a tax-free loan and keep their hard earned money
working for them. This plan offers small business owners all
the benefits of a big company 401K without the administrative
expense and complexity," says Daniel Lamaute, CEO of Lamaute
Capital.

It doesn't matter if you started your business last week or
several years ago. Any single business owner, an independent
contractor with 1099 income, freelancer, sole proprietor,
or in a partnership, Limited Liability Company (LLC) or
corporation, can tap into the full benefits of the
Self-Employed 401K.

- You may contribute up to $40,000 to the plan.
- Your contributions are fully-tax deductible and are based
on compensation or earned income.
- You can roll over assets from other plans or IRA's into
your Self-Employed 401K.
- You can take a loan that is tax-free and penalty free from
your Self-Employed 401K - up to the lesser of 50% or $50,000
of your account balance.

Small business owners should ask their accountants about this
plan and how it may benefit them. Each Self-Employed 401K
must be set up no later than December 31, 2002 to be eligible
for tax deductions in the 2002 tax year. Anyone can visit
www.investsafe.com to request a free information kit on the
401K plan for the self-employed and small business owner.