Yes, you can employ a Self-Directed 401(k) plan. Indeed, there are a number of advantages in doing so." Still it is important to keep in mind that the way the plan is set up and which type of 401(k) are critical decisions that must be handled with care.
Greenville, SC (PRWEB) August 14, 2014
In light of the fact that the use of Self-Directed IRA s, is gaining increasing popularity and acceptance. This blog focuses on one very important question "Is it possible to take advantage of the powerful concept of a Self-Directed 401(k) plan?"
The blog states that "Yes, you can employ a Self-Directed 401(k) plan. Indeed, there are a number of advantages in doing so." Still it is important to keep in mind that the way the plan is set up and which type of 401(k) are critical decisions that must be handled with care. Individuals who are not sure which type of 401(k) plan they need, should consult with their professionals (financial adviser, CPA, etc.).
These plans work well for self-employed individuals, LLCs, corporations, and partnerships because of the low startup costs and relatively high contribution limits. Individuals can contribute up to $17,500 per year as an employee. On top of that, the business can also contribute up to 25 percent of compensation as an employer match. (Self-employed individuals must subtract half of their self-employment tax from total compensation before calculating allowable contributions.)
The blog also carefully lays out the advantages of a Self-Directed 401(k) including: relatively high contribution limits compared to IRAs; tax deferral of contributions; substantial protection from creditors; no unrelated debt-financed income tax liability; and so much more.
It is also very important to note that self-direction and the use of brokerage windows are not quite the same thing. A brokerage window within a 401(k) plan allows individuals to maintain an account with a securities broker-dealer. That allows individuals to buy and sell individual securities through their 401(k). So if they want to restrict themselves to trading publicly-traded stocks, bonds, ETFs and closed-end funds, and they want the freedom to make intra-day trades, a brokerage window can service this purpose.
Click here to view the full version of this blog.
About American IRA, LLC:
Click here to claim one of our 7 Self-Directed IRA guide(s).
American IRA is committed to providing every client with gold-level service, regardless of account size. Experience their expertise through their certified IRA services professionals. Enjoy the value with one low annual fee of $285 with unlimited assets and unlimited account values. American IRA clients love the benefit of no charge for "All Cash" accounts. The performance of the American IRA staff is unmatched, with quick and efficient processing within 48 hours.
American IRA services thousands of clients and has over $300 million in assets under administration.
American IRA was built by investors for investors, and brings their successful investment experience to the table, providing excellent educational material showing the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
American IRA is conveniently located in Asheville, NC and Charlotte, NC, and serves clients nationwide.