The Individual 401k or Solo 401k

The Individual 401K or “Solo 401k”

The solo 401k is a remarkably different type of retirement savings account that allows investors to leverage the protection of a corporation combined with the investment freedom of a self directed IRA. The demand for the solo 401k is increasing, and with good reason. With a solo 401k you can take advantage of larger contribution limits, better tax benefits, personal lines of credit, and much more. On this page you will learn about the many different benefits associated with an individual 401k.

    • Large Contributions: You can contribute more than $50,000 into your individual 401k every year. This is almost 10 times more than other IRA options.
      • Benefit to you This allows you to maximize your retirement savings quicker without paying penalties to the IRS.
    • Flexible Contributions: You also have the ability to change your contribution limit from year to year depending on your income and profitability.
      • Benefit to you With an individual 401k you can focus on growing your retirement year to year without limiting yourself because you are worried about limits in the future.
    • Tax benefits: Your contributions to your solo 401k can be made tax-free (roth) or tax deductible (traditional) or both.
      • Benefit to you More money in your pocket at the end of the year.
    • Personal Line of Credit: You have the ability to create a personal or business line of credit by taking a loan out of the individual 401k.
      • Benefit to you This money can be used as a down payment on a house or as a loan to start a business.
    • Pay the Interest to Yourself: The interest owed from the personal line of credit is paid directly back into the solo 401k.
      • Benefit to you Now you don’t have to pay high interest payments to a loan company or bank, you pay the interest to YOU.

An individual 401k allows you to do much more with your portfolio. For example: you can own real estate tax deferred while also investing in the stock market tax free, all in the same account! This type of flexibility is only seen in a solo 401k.

To learn more about how to set up an individual 401k please reach out to a representative today!

Thanks to our friends at Horizon Trust, you can also download a free brochure about the individual 401k by following this link. The Individual 401k

How Can We Help You?

Our team of experienced Self Directed Investment professionals are here to help answer your questions. We have years of experience and have seen nearly every type of account, investment, tax issue, funding method, and question imaginable. Give us a call and let us offer our expertise.