In Light of Rebounding Real Estate Market, Real Estate Agents Turning to Solo 401(k) Plan to Help Reduce Taxable Income

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Solo 401(k) Plan would allow real estate professionals to defer up to $56,500 for 2013

Real estate Agents Using Retirement Funds to Buy Real Estate Tax-Free

Over the last few months, we have helped many real estate agents establish a Solo 401(k) Plan for the business in order to offset the tax on the increased earnings

IRA Financial Group, the leading facilitator of Solo 401(k) Plans has seen a strong demand from real estate agents looking to establish Solo 401k real estate Plans for the business in order to reduce their taxable income in 2013. As a result of the rebounding real estate market, real estate professionals are expecting to see higher real estate commission income in 2013. “Over the last few months, we have helped many real estate agents establish a Solo 401(k) Plan for the business in order to offset the tax on the increased earnings, “stated Maria Ritsi, a paralegal with the IRA Financial Group.

The annual Solo 401k contribution consists of 2 parts, an employee salary deferral contribution and an employer profit sharing contribution. In 2013 the total contribution limit for a Solo 401k is $51,500 or $56,500 if age 50 or older. The total allowable contribution limits are combined to get the maximum Solo 401k contribution limit.

Up to $17,500 per year can be contributed by the participant through employee elective deferrals. An additional $5,500 can be contributed for persons over age 50. These contributions can be up to 100% of the participant's self-employment compensation. Through the role of employer, an additional contribution can be made to the plan in an amount up to 25% of the participant's self- employment compensation (20% if you are a Sole Proprietor or a Schedule C Tax Payer). “The high tax-deductible contribution feature of the Solo 401(k) Plan makes it a highly attractive tax and retirement planning option for a self-employed real estate professional,” stated Ms. Ritsi.

In addition, IRA Financial Group’s Solo 401K Plan offers a self-employed real estate professional with 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 one to borrow up to $50,000 for any purpose.

IRA Financial Group has helped hundreds of real estate agents establish IRS compliant Solo 401k Plans. The whole process can be handled by phone, email, fax, or mail and typically takes between 1-4 days to complete, the timing largely on the custodian holding your retirement funds. IRA Financial 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 Individual 401k Plan.

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.

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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