Individuals who find their traditional 401k investments very limited and unstable can easily switch their retirement plan into a Solo 401k self directed account.
Los Angeles, CA (PRWEB) April 15, 2014
More and more retirement account holders particularly those who own small business retirement plan are beginning to utilize their retirement funds to different investment options other than stocks and mutual funds. Self-directing of retirement accounts is becoming the new retirement planning strategy that gives plan holders the flexibility and control over their hard earned money.
Self directed retirement accounts such as the self directed Solo 401k allows individuals to decide for themselves on what kind of non-traditional investments they want their retirement money to be invested in. It also gives them the ability to execute their decisions by simply writing a check through its checkbook control feature. Non-traditional investments include start up business, precious metals, tax liens, and tax deeds, real estate, and other investments not related to the stock market.
Individuals who find their traditional 401k investments very limited and unstable can easily switch their retirement plan into a Solo 401k self directed account. The process could be done easily through either a direct rollover or a traditional rollover.
-Direct rollover proves to be the easiest way to transition a retirement plan. This is done by directly putting all the funds from a previous 401k to the newly set up self directed 401k. The account holder wouldn’t be able to touch the funds as it is immediately transferred to the new account of the small business retirement plan. No withholding of tax involved and the process is quick and efficient.
-A traditional rollover can also be an option when transitioning a retirement account. The traditional rollover has a strict rule called the 60-day rollover rule. This means funds from a retirement account are initially transferred to the owner’s bank account and within 60 days from the date it was transferred, the funds must then be moved to the self directed plan. If the transition exceeds 60 days, taxes and penalty will be imposed on the account.
Going for a self directed 401k plan is ideal for individuals planning to become small business owners after being employed, or an employed individual who also runs a small business on the side. However, small business must not have any fulltime employee. The spouse can also contribute to the self directed small business retirement plan.
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 about the solutions they provide, please contact: (949) 228-9393.