IRA Financial Group Announces Customized Solo 401(k) Plan for Real Estate Professionals

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With a solo 401(k) plan, self-employed real estate agents can make higher contributions than Wall Street executives as well as invest in real estate and much tax-free!

Solo 401(k) Plan for Real Estate Professionals

The solo 401(k) plan has surpassed the SEP IRA as the retirement plan of choice for the majority of real estate professionals

In recent years, a wave of white-collar professionals have cut ties with the corporate grind to pursue second careers as real estate brokers. According to the National Association of Realtors (NAR), more than one-third of realtors report that they had a prior career in management, business, finance or sales. Furthermore, the majority of these real estate agents classify themselves as self-employed. Eight of 10 realtors are affiliated with their firm as independent contractors, qualifying for a solo 401k retirement plan. “The solo 401(k) plan has surpassed the SEP IRA as the retirement plan of choice for the majority of real estate professionals," stated Adam Bergman, a tax attorney with the IRA Financial Group.

In 2002, the Economic Growth and Tax Reconciliation Act granted the solo 401(k) equal benefits to a traditional 401(k), greatly popularizing the plan. The flexible retirement plan quickly gained widespread praise and recognition-- mainly for its substantially higher contribution limits, which include employee deferral contributions as well as profit sharing contributions. For 2012, the maximum 401(k) plan contribution is $50,000 for individuals under 50 years old and $55,000 for those over 50 years old. Whereas, most corporate 401(k) plans only allow their plan participants, including executives, to make employee deferral contributions which is limited to just $17,000 for those employees under the age of 50 and $22,500 for those over 50 years old. The solo 401(k) plan also allows self-employed individuals, such as realtors to make non-traditional investments with their solo 401(k) funds, including real estate. Whereas, the majority of the large corporation 401(k) plan only allow for traditional types of investments, such as mutual funds. “The high contribution limitations couples with the investment opportunities provide self-employed real estate professionals with a far more attractive retirement option than most corporative executives," stated Mr. Bergman.

IRA Financial Group’s self employed 401K plan is unique and so popular for real estate professionals because it is designed explicitly for self-employed professionals. With IRA Financial Group’s solo 401K plan, self-employed individuals or small business owners with no employees can benefit by making high annual contributions – up to $50,000 - with an additional $5,500 catch-up contribution for those over age 50, make traditional as well as non-traditional investments, such as real estate, as well as borrow up to $50,000 or 50% of their account value tax-free and penalty free. IRA Financial Group’s solo 401(k) plan is a trustee directed plan meaning the trustee and not the custodian is in charge of making investment decisions on behalf of the plan. With a solo 401(k) plan, in most cases the trustee will be the plan participant providing the plan participant with greater control and investment authority over his or her retirement funds. In addition, with IRA Financial Group’s solo 401K Plan, the plan account can be opened at any local bank, including Chase, Wells Fargo, and even Fidelity.

IRA Financial Group’s solo 401K plan is easy to operate. There is generally no annual filing requirement unless the fair market value of the assets in the solo 401K Plan exceed $250,000, in which case a short information return will be required to be filed with the IRS (Form 5500-EZ).

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, including real estate tax-free and without custodian consent!

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

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Jaclyn Baily
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