IRS, under Employee Retirement Income Security Act of 1974 (ERISA) has legally approved Real Estate to be an option for investment in a Solo 401k account.
Los Angeles, CA (PRWEB) March 08, 2014
Investing in Real Estate using an Individual 401 k has been proven to be a good strategy in growing a plan holder’s retirement funds. Sense Financial reveals why 401k real estate investment is a highly recommended option for soon to be retiring people. With the different options presented, people will realize that retirement savings must not always have to be invested in stocks or mutual funds.
What most individuals don’t know is that IRS, under Employee Retirement Income Security Act of 1974 (ERISA) has legally approved Real Estate to be an option for investment in a Solo 401k account. Almost any type of investment is possible except in cases which involves transactions with a disqualified person. What an individual 401 k plan holder gets from making investments in Real Estate has been defined.
Dmitriy Fomichenko, President of Sense Financial and expert in retirement planning and Real Estate investment said, "While stock market was performing well recently, many are concerned of its instability and are looking for alternative investments options. The solutions that we offer allow our clients to have access to virtually limitless investment opportunities." This was quoted from his statement about the upcoming Exclusive Property Showcase Event in Costa Mesa. He refers Real Estate investment as one of the “limitless investment opportunities”.
The types of 401k real estate investment includes single family rental property, commercial property, apartments, town homes and condos, mobile homes, mortgage notes, and real estate purchase options. Sense Financial have pointed out the benefits of real estate investment using individual 401 k unveiling all income or gain produced by a Solo 401k can be entitled with tax deferred profits. Also, using the retirement money to purchase real estate makes the retirement plan receive tax free gains and income in which tax can be paid on a later date and not during the plan year, when all the earnings have been concluded. This also means that instead of paying taxes immediately, the money that was supposed to go to tax are combined in the investment money that makes the fund grow more, tax free.
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.