Tax Season is Finally Over – Tax Planning and Retirement Solutions for Entrepreneurs and Small Business Owners

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The Solo 401k Plan is a perfect tool to help entrepreneurs and small business owners reduce their 2011 tax liability as well as save for their retirement. With the end of the 2010 tax season finally upon us, today is a great time for entrepreneurs and small business owners to start planning for their retirement while simultaneously reducing their 2011 tax burden.

Solo 401K

A Solo 401(k) is perfect for sole proprietors, small businesses and independent contractors such as consultants.

With the end of the 2010 tax season finally upon us, today is a great time for entrepreneurs and small business owners to start planning for their retirement while simultaneously reducing their 2011 tax burden.

The “one-participant 401(k) plan” or Solo 401(k) Plan is an IRS approved qualified retirement plan, which is suited for business owners who do not have any employees, other than themselves and perhaps their spouse. The Solo 401K plan” is not a new type of plan. It is a traditional 401k plan covering only one employee. The plans have the same rules and requirements as any other 401k plan. The surging interest in these plans is a result of the EGTRRA tax law change that became effective in 2002.

A Solo 401K Plan offers a self employed business owner the ability to use his or her retirement funds to make almost any type of investment, including real estate, tax liens, private businesses, precious metals, and foreign currency on their own without requiring custodian consent tax-free! In addition, a Solo 401K Plan will allow you to make high contribution limits (up to $54,500) as well as borrow up to $50,000 for any purpose.

A Solo 401(k) is perfect for sole proprietors, small businesses and independent contractors such as consultants. To be eligible to benefit from the Solo 401(k) plan, investor must meet just two eligibility requirements: (i) The presence of self employment activity, and (ii) The absence of full-time employees.

“The Solo 401k Plan is a perfect retirement planning vehicle as well the most tax advantageous retirement plan for entrepreneurs and small business owners, states, Adam Bergman, senior tax attorney of the IRA Financial Group. While an IRA only allows a $5,000 contribution limit for 2011 (with a $1,000 additional “catch up” contribution for those over age 50), a plan participant of a Solo 401K Plan can make annual contributions up to $49,000 annually with an additional $5,500 catch up contribution for those over age 50 for 2011.

“Unlike a SEP which limits a small business owners contribution to 25% of his or her compensation earned, a Solo 401(k) Plan offers the plan participant the ability to make employee deferrals and profit sharing contributions up to $54,500 if the participant is over the age of 50, in addition, to providing the participant with the option of borrowing up to $50,000 for any purpose”, stated Adam Bergman.

In addition, the Solo 401k Plan offers individuals all the “checkbook control” benefits of a Self Directed IRA or Self Directed Roth IRA. With a Self Directed IRA LLC an individual can make Self Directed IRA Real Estate investments tax-free!

In general, the Solo 401k Plan is easy to operate. There is generally no annual filing requirement unless your solo 401(k) Plan exceeds $250,000 in assets, in which case you will need to file a short information return with the IRS (Form 5500-EZ).

Now that tax season is over, it’s important for entrepreneurs and small business owners to focus on 2011 in order to maximize their tax benefits as well as begin saving for their retirement.

To learn more about the Solo 401k Plan or Self Directed IRA rules, contact a 401(k) Expert at the IRA Financial Group. The IRA Financial Group will take care of setting up your entire Solo 401k Plan. The whole process can be handled by phone, email, fax, or mail and typically takes between 5-14 days to complete, the timing largely depending on the state of formation and the custodian holding your retirement funds. Our 401k experts and tax and ERISA attorneys are on site greatly reducing the set-up time and cost. Most importantly, each client of the IRA Financial Group is assigned a tax attorney to help with the establishment of the Solo 401k Plan. You will find that our fee for this service is significantly less than other companies that perform the same or similar services.

About the IRA Financial Group
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.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com

Marketing Services by Karma Snack

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