As readers can see a Solo 401K is truly an investment giant in the retirement world.
Charlotte, NC (PRWEB) January 11, 2016
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:
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