For those with a Self-Directed Solo 401k, the talk of potentially slashing contribution limits appropriately has some investors worried.
Charlotte, NC (PRWEB) October 31, 2017
With recent talks on Capitol Hill, the markets are left wondering what will become of a number of financial issues important to American investors—tax cuts, tax breaks, and, potentially, any movement on IRAs. For those with a Self-Directed Solo 401k, the talk of potentially slashing contribution limits appropriately has some investors worried.
Jim Hitt, the CEO of American IRA in Asheville, NC, recently turned to the American IRA blog to explain what this might mean to investors. Writing about the chances of Congress slashing these contributions, Jim Hitt started the blog with, simply: “No.”
“If they were,” wrote Jim Hitt, “It would be big news to many of our clients, who went through the trouble of setting up a self-directed solo 401k for their small businesses or consulting ventures.”
Pointing to a recent article in the New York Times, Jim Hitt pointed out that there’s very little language in the form of a bill on the floor of the House of Representatives that would actually change the contribution structure of the Self-Directed Solo 401k —or any 401k, for that matter. That means that while there’s talk in the press and by some talking heads about changing contribution limits, any serious legislation looking at those changes does not actually appear to be in the works.
“There’s a big difference between consideration or theorizing,” says Jim Hitt, “and what actually gets done. The truth is, it takes a lot of work to get a bill passed these days, and it requires a lot of compromise. The mere fact that some have talked about changing contribution limits to the 401k is interesting, but until something materializes, it won’t be anything more than that.”
With Jim Hitt considering it unlikely that there are any changes to the 401k plans soon, the fact remains that these plans retain high contribution limits for the average retirement investor, making them an ideal vehicle for those who want to reduce their tax burden through retirement savings. Self-Direction means that investors can choose different investment types across a range of asset classes that aren’t prohibited by the IRS.
For more information on this legislation and American IRA’s analysis, visit the American IRA blog at http://www.AmericanIRA.com, or call 866-7500-IRA.
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.