Solo 401k is for owner-only businesses or those with part-time employees only.
Business types such as sole proprietorships, closely held family businesses, partnerships and corporations can take advantage of what the Solo 401k has to offer–maximized savings at a low cost and the flexibility to invest in traditional and alternative investments tax free or by deferring taxes.
Why a Solo 401k?
There are a number of features of the Solo 401k that make it appealing to business owners.
Alternative Assets & Equity Investments
In addition to investing in stocks and mutual funds, our Solo 401k allows you to invest in many types of investments such as real estate, private equity, hedge funds, gold, private loans, and much more–all by writing a check. For a list of investment options click here.
Access to Participant Loans
Solo 401k permits you to take a loan or borrow from your retirement funds. This comes in handy if you have a growing company. Loans can be processed from the Solo 401k at 50% of the account balance but cannot exceed $50,000. To find out more about the loan option visit: Solo 401k Loan and Solo 401k Loan Facts.
For example, Gary has an account balance of $200,000. Fifty percent of his account is $100,000; however, the maximum loan that can be taken from a plan is $50,000.
Also, after the loan option has been exhausted, you may qualify to take a hardship withdrawal from the plan, provided certain criteria dedicated by the IRS are met. Please contact us at 800-489-7571 or e-mail us at firstname.lastname@example.org to find out more about this option.
Our Solo 401k permits Roth contributions, also known as after-tax contributions because taxes are paid going in but not going out. Also, Roth 401k contributions are allowable regardless of income level, thereby affording taxpayers, who would not otherwise be eligible, to take advantage of the Roth component. For 2016, you can also contribute up to $53,000 to your Solo 401k, of which $18,000 can be allocated as Roth contributions.