Solo 401(k) plan vs. SEP IRA
The solo 401(k) plan offers the self-employed and small business owner more attractive retirement options than a SEP IRA, such as Roth contribution options, catch-up contributions, and the $50,000 tax-free loan
NEW YORK (PRWEB) April 30, 2018
IRA Financial Group, the leading provider of solo 401(k) plans for self-employed and small business owners, has experienced strong demand from self-employed individuals and small business owners in 2018 seeking to establish self-directed solo 401(k) plans. The growing popularity of the solo 401(k) plan can be attributed to the following main factors: (i) high annual contribution limits, which are $55,000 or $61,000 if over the age of 50, (ii) $50,000 tax-free loan option, and (iii) ability to use a nonrecourse loan to buy real estate without tax. “The solo 401(k) plan offers the self-employed and small business owner more attractive retirement options than a SEP IRA, such as Roth contribution options, catch-up contributions, and the $50,000 tax-free loan." stated Adam Bergman, a partner with the IRA Financial Group.
According to Mr. Bergman, “with a solo 401(k) plan, a solo 401(k) plan participant can reach their maximum contribution amount quicker: A Solo 401(k) Plan includes both an employee and profit sharing contribution option, whereas, a SEP IRA is purely a profit sharing plan. With a Solo 401(k) Plan you can make a contribution of up to $55,000 to the plan each tax year ($61,000 if the participant is over the age of 50). However, with a SEP IRA, the maximum amount that can be deferred is $55,000 since a SEP IRA does not offer any catch-up contributions. In addition, with a Solo 401(k) Plan you can borrow up to $50,000 or 50% of your account value, whichever is less. The loan can be used for any purpose. With a SEP IRA, the IRA holder is not permitted to borrow even $1 dollar from the IRA without triggering a prohibited transaction
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, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the leading provider of Solo 401(k) Plan solutions. IRA Financial Group has 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 and private business investments without custodian consent.
Adam Bergman, IRA Financial Group partner is a frequent contributor to Forbes on the topic of self-directed retirement plans and has written seven books the topic of self-directed retirement plans, including, “How to use Retirement Funds to Purchase Cryptocurrencies, “The Checkbook IRA”, “Going Solo,” Turning Retirement Funds into Start-Up Dreams, Solo 401(k) Plan in a Nutshell, Self-Directed IRA in a Nutshell, and in God We Trust in Roth We Prosper.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.