Get Ready to Launch a Solo 401K Retirement Plan Feb. 2016 Article by SmallBizTax.net Generates a Response from American IRA

Share Article

The fact that a Solo 401K allows deferrals of up to $18,000 ($24,000 if 50 years or older) of compensation is a strong point mentioned by this Feb. 2016 SmallBizTax.net article. There's no argument on that point from American IRA still there is a way to generate even more tax savings with this tool.

American IRA CEO

American IRA CEO, Jim Hitt

As readers can see a Solo 401K is truly an investment giant in the retirement world.

Not only does this article mention the large tax deferrals of $18,000 per year ($24,000 if an account holder is 50 or older), it also mentions that these contributions can grow tax free inside the retirement account until a distribution is made. Jim Hitt, CEO of American IRA says, "I couldn't agree with the Feb. 2016 SmallBizTax.net article more. Solo 401Ks are, what I call, a retirement account on steroids. They offer tremendous contribution limits in comparison to other retirement accounts and like most retirement accounts, those contributions can grow tax free until a distribution is taken. The one additional point that I would offer is that a Self-Directed Solo 401K amplifies that power by allowing the account holder to invest in alternative assets such as real estate, private loans, tax liens, precious metals and more."

The article begins by pointing out that most limits for retirement plans didn't change very much for 2015. Then it suggests that small business owners can take matters into their own hands.

Using this strategy, small business owners qualify to benefit from both employee and employer contributions. They go on to state that the employer deductible contribution is capped at the lesser of 24% of compensation or $53,000 ($59,000 if over age 50). Then they explain that the account holders contribution limit of $18,000 ($24,000 if 50 or older) does not count toward the 25% employer cap. This means account holders can combine an employer contribution with an employee deferral for greater savings.

Jim Hitt, CEO of American IRA closes by saying "This article was spot on in every way. As readers can see a Solo 401K is truly an investment giant in the retirement world. Individuals shouldn't forget that they can use these accounts to invest in alternative assets which equals more tax savings since the profit within the account grows tax free until a distribution is taken. Finally, many people may not realize that individuals can also take a personal loan from their Solo 401K for any reason up to $50,000 or 50% of account value, whichever is less. As you can see this is a powerful tool that has almost limitless possibilities."

About American IRA, LLC:

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.

American IRA is the sponsor of American Wealth Radio. Click here for more information.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Sean McKay
@iraexpert
Follow >
American Wealth Radio
since: 06/2015
Like >
Visit website