Pending Tax Rate Increases Causing Americans to Seek Out Tax Deferral Retirement Solutions Like the Individual 401(k) Plan, According to IRA Financial Group Tax Attorney

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With taxes expected to increase in 2013, Americans are beginning to seek out tax deferral retirement solutions to help reduce income taxes

What will a President Obama Victory Mean for Retirement Investors

With investment and income tax rates expected to increase in 2013, deferring additional income from tax is something more and more Americans are exploring

With budget negotiations set to begin shortly between President Obama and Congressional leaders, according to an IRA Financial Group study, many Americans have started seeking out retirement tax deferral opportunities to help shelter additional income from higher expected taxes. Now that President Obama has won the election, many tax experts are expecting tax increases on investment income to kick in automatically in January 2013. For example, if the tax increases that are set to kick in automatically in January, the rate on dividends for high-income taxpayers will rise to 43.4 percent from 15 percent and the top rate on capital gains to 23.8 percent from 15 percent.

IRA Financial Group’s individual 401K Plan, is a retirement solution that will allow a self-employed individual or small business owner with no employees to defer up to $50,000 ($55,500 if they are over the age of 50), allowing them to reduce their tax liability significantly. “With investment and income tax rates expected to increase in 2013, deferring additional income from tax is something more and more Americans are exploring,” according to Maria Ritsi, a senior paralegal with the IRA Financial Group.

“IRA Financial Group’s individual 401K plan is unique and so popular because it is designed explicitly for the self-employed professional and small business owners with no full-time employees who want a flexible retirement plan with no burdensome annual administrative requirements, “ stated Ms. Ritsi.

There are many features of the IRA Financial Group’s individual 401K plan that make it so appealing for small business owners.

-High Contributions: Like all solo 401K plans, IRA Financial Group’s individual 401K plan will allow a plan participant to make annual contributions in 2012 up to $50,000 annually with an additional $5,500 catch-up contribution for those over age 50. The high contribution feature is one of the reasons a self-employed 401K plan is the most popular retirement vehicle for the self-employed.

Tax and Penalty free loan: IRA Financial Group’s Solo 401K plan allows plan participants to borrow up to $50,000 or 50% of their account value (whichever is less) for any purpose, including paying credit card bills, mortgage payments, or anything else. The loan has to be paid back over a five-year period at least quarterly at a minimum prime interest rate (you have the option of selecting a higher interest rate).

-Checkbook Control: With IRA Financial Group’s individual 401k plan, a plan participant will be granted checkbook control over his or her retirement funds. With IRA Financial Group’s self directed individual 401K plan, the plan account can be opened at any local bank, including Chase, Wells Fargo, and even Fidelity. In addition, the plan participant can make almost any traditional as well as non-traditional investments, such as real estate, precious metals, tax liens, and much more.

-Individual 401K Roth Contributions & Conversion: IRA Financial Group’s individual 401K plan contains a built in Roth sub-account which can be contributed to without any income restrictions. In addition, the individual 401(k) plan allows for the conversion of a traditional 401(k) or 403(b) account to a Roth subaccount.

-Easy Administration: IRA Financial Group’s individual 401(k) plan is easy to operate. There is generally no annual filing requirement unless the self-employed 401(k) Plan assets exceeds $250,000, in which case a short information return with the IRS (Form 5500-EZ) must be completed.

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, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market's leading “provider of IRS approved self-directed individual 401(k) plans. IRA Financial Group has 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 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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