IRA Financial Group Report Shows Self-Employed Individuals Moving from SEP IRA to Individual 401(k) Plan in Significant Numbers

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More accountant and retirement advisors are beginning to recognize the enormous tax and retirement advantages of establishing an Individual 401(k) Plan versus a SEP IRA

Individual 401K Plan

More and more accountants are starting to turn away from the SEP IRA and starting to promote the individual 401(k) plan to their self-employed clients

IRA Financial Group, the leading provider of IRS compliant individual 401(k) plans, has seen a significant increase in the number of self-employed and small business owners moving from the SEP IRA to the individual 401k plan.

A report generated by the IRA Financial Group has shown that since the beginning of 2012, a growing number of self-employed individuals are choosing the individual 401(k) plan over a SEP IRA The results were based off hundreds of interviews of accountants and retirement advisors

“The growing recognition by accountants and retirement advisors of the enormous retirement advantages of the individual 401(k) plan versus the SEP IRA is not surprising considering the individual 401(k) plan offers far more tax planning advantages than a SEP IRA,” stated Adam Bergman, a tax attorney with the IRA Financial Group. For example, if a self-employed individual over the age of 50 earned $100,000 and earned income, with a SEP IRA that individual would only be able to defer $20,000 for that year. Whereas, in the case of an individual 401(k), thanks to the 2002 EGTRRA Act, the self-employed individual would be able to defer approximately $42,500 ($22,500 as an employee deferral and 20% of his/her compensation as a profit sharing contribution).

“IRA Financial Group has partnered with accountant and financial planners to promote the benefits of the individual 401(k) plan, “stated Mr. Bergman. “More and more accountants are starting to turn away from the SEP IRA and starting to promote the individual 401(k) plan to their self-employed clients,” stated Mr. Bergman.

IRA Financial Group’s individual 401K plan is unique and so popular because it is designed explicitly for small, owner only business. With IRA Financial Group’s individual 401K plan, self-employed individuals or small business owners with no employees can benefit by making high annual contributions – up to $50,000 - with an additional $5,500 catch-up contribution for those over age 50, make traditional as well as non-traditional investments, such as real estate, as well as borrow up to $50,000 or 50% of their account value tax-free and penalty free. IRA Financial Group’s individual 401(k) plan is a trustee directed plan meaning the trustee and not the custodian is in charge of making investment decisions on behalf of the plan. With an individual 401(k) plan, in most cases the trustee will be the plan participant providing the plan participant with greater control and investment authority over his or her retirement funds. In addition, with IRA Financial Group’s individual 401K Plan, the plan account can be opened at any local bank, including Chase, Wells Fargo, and even Fidelity.

IRA Financial Group’s individual 401K plan is easy to operate. There is generally no annual filing requirement unless the fair market value of the assets in the solo 401K Plan exceed $250,000, in which case a short information return will be required to be filed with the IRS (Form 5500-EZ).

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP and Dewey & LeBoeuf LLP.

IRA Financial Group is the market’s leading “Checkbook Control” Self Directed IRA and Solo 401k Plan Facilitator. We have helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate tax-free and without custodian consent!

To learn more about the IRA Financial Group please visit our website at or call 800-472-0646.

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Jaclyn Baily
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