The Solo 401k Roth retirement plan is a great option to help self-employed individuals who want to make the most out of their retirement funds while generating tax-free retirement savings and enjoying the ability to invest in non-traditional assets.
Los Angeles, CA (PRWEB) March 26, 2014
The solution for a tax-free retirement is made simple by Sense Financial, which is either to opt for Solo 401k Roth contribution or to make Roth conversions on existing retirement account for self-employed. Sense Financial believes and expects that years from now, federal and state income tax rates will eventually increase and non-Roth IRA and Solo 401k account holders who pay their contribution on pre-tax basis will have to face the consequences of paying taxes from their retirement money once they start receiving qualified distribution
One of the great advantages of Solo 401k is its Roth sub-account feature.
-Individuals can make after-tax contributions directly to the Solo 401k Roth sub-account up to $23,000 per year.
-Alternatively, individuals can also make Roth conversion which happens when an account holder of a non-Roth account decides to transfer all assets or part of it to the Roth account. This process is common to individuals who made pre-tax contributions on their retirement plan then at some point prefer to pay taxes upfront to benefit later on from tax-free withdrawals, tax-free earnings, and tax-free distributions from their Solo Roth 401k retirement savings.
-The Solo 401k Roth retirement plan is a great option to help self-employed individuals who want to make the most out of their retirement funds while generating tax-free retirement savings and enjoying the ability to invest in non-traditional assets such as precious metals, private businesses, and real estate. All these are tax-free and without the need for approval from a custodian.
An advice from Suze Orman from one of her articles from Oprah.com, “Generally, I think it's incredibly smart to move to a Roth IRA. Based on what's going on in our country, tax rates will likely rise, which makes paying at today's rates alluring. Still, with so many variables to consider, this is one area in which it's imperative you consult with a CPA or financial adviser.”
When the assets from the non-Roth account are transferred to a Roth account, the total value of the assets on the day it was converted minus any cost basis has to be included in the taxable income of that current year. Ms. Orman added a reminder, “The amount of the conversion is counted as taxable income for that year, so the more you move, the greater the likelihood that you'll be pushed into a higher tax bracket. Smaller moves spread out over time can be a smart way to minimize tax-bracket creep.”
Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.
To learn more information about Solo 401(k) for self-employed real estate agents, please visit http://www.sensefinancial.com.