One of the first reasons to think about a Solo 401(k) is the fact that it can reduce an individual’s income tax liability. Because the law allows these investors to deduct their contributions each year from taxable income, they’ll owe less in taxes.
Asheville, NC (PRWEB) September 23, 2017
Calling the Self-Directed Solo 401(k) an “amazingly flexible and powerful tool for long-term wealth building,” the CEO of American IRA in North Carolina, Jim Hitt, recently explained to small business investors how this tax-protected account can help build long-term wealth. In addition, the post online explained how investors can go about this process—and why it can be deceptively simple.
One of the first reasons to think about a Solo 401(k), argues Jim Hitt, is the fact that it can reduce an individual’s income tax liability. Because the law allows these investors to deduct their contributions each year from taxable income, they’ll owe less in taxes when they use some of their income toward the Solo 401(k). This produces an immediate savings while promoting long-term investment—precisely what these types of accounts were designed for.
“One problem with these 401(k)s,” says Jim Hitt, “is that they sound complicated. Investors might be familiar with an employee-provided 401(k), but utterly confused about how to set one up for themselves, especially when starting up a small business themselves.” But the key to understanding a Self-Directed Solo 401(k) plan, Jim Hitt argues, is that it’s much simpler than many investors initially believe.
A Self-Directed Solo 401(k) plan is simply a type of retirement plan that applies to individuals with specific circumstances. Once the individual can demonstrate that they adhere to these requirements, the account is straight forward to set up. And because Self-Direct allows for the investment into asset classes such as gold and precious metals, venture capital, and even direct ownership of real estate, they can immediately start using the tax benefits of these accounts to make powerful investments.
“The options are very wide-ranging,” Jim Hitt said. “All that’s required is that investors adhere to tax regulations and understand the process. After that, a Solo 401(k) plan under Self-Direction can be one of the best ways to build wealth and see immediate tax benefits.”
American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating 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.
As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville, NC.