IRA Financial Group Introduces Special SEP IRA Rollover Self-Directed Solo 401(k) Plan
December 9th, 2013
Self-Directed Solo 401(k) plan will accept tax-free SEP IRA rollovers
IRA Financial Group, the leading provider of solo 401k plans announces the introduction of its special SEP IRA rollover self-directed solo 401(k) plan for the self-employed and small business owner. The special self-directed solo 401(k) Plan will be geared towards self-employed individuals looking to rollover a SEP IRA into a self-directed retirement structure. “Our special open architecture self-directed solo 401(k) plan will allow SEP IRA holders to rollover their SEP IRA funds into a new solo 401(k) Plan without tax or penalty, “ stated Susan Glass, a retirement tax specialist with the IRA Financial Group.
A solo 401(k) plan, also known as an individual 401k Plan, is an IRS approved retirement plan, which is suited for business owners who do not have any employees, other than themselves and perhaps their spouse. The “one-participant 401(k) plan” or individual 401(k) Plan is not a new type of plan. It is a traditional 401k plan covering only one employee. Unlike a Traditional IRA, which only allows an individual to contribute $5500 annually or $6500 if the individual is over the age of 50, a solo 401k Plan offers the Plan participant the ability to contribute up to $56,500 each year. Before the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) became effective in 2002, there was no compelling reason for an owner-only business to establish a solo 401(k) Plan because the business owner could generally receive the same benefits by adopting a profit sharing plan or a SEP IRA. After 2002, EGTRRA paved the way for an owner only business to put more money aside for retirement and to operate a more cost-effective retirement plan than a Traditional IRA or 401(k) Plan.
According to Ms. Glass, the main reason the solo 401(k) Plan has become more popular than a SEP IRA is that one can reach their maximum annual contribution of $51,000 quicker. In addition, a solo 401(k) plan has a catch-up contribution of $5500, which is not the case with a SEP IRA. Furthermore, a solo 401(k) plan has a Roth component and allows plan participants to borrow up to $50,000 or 50% of their account value whatever is less.
IRA Financial Group’s special SEP IRA rollover self-directed solo 401(k) Plan is designed to allow a SEP IRA rollover to a solo 401k plan without incurring any tax or penalty on the rollover.
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 call 800-472-0646.