Is there any Risk of Establishing a Solo 401(k) Plan?

kim k privacy, "all rights reserved. use of our service is protected by our privacy policy and terms of service" state tax, lower my bills online service,

January 24th, 2013

A solo 401(k) Plan is an IRS approved qualified retirement plan.  As long as certain eligibility requirements are satisfied, there is no risk for a business to adopt a solo 401K plan, also known as an Individual 401(k) plan or self-directed solo 401(k) Plan.  In addition, IRA Financial Group’s Solo 401(k) Plan has been pre approved by the IRS as documented in an IRS Letter of Determination.

A Solo 401(k) plan is well suited for businesses that either do not employ any employees or employee certain employees that may be excluded from coverage. A Solo 401K plan is perfect for any sole proprietor, consultant, or independent contractor.

To be eligible to benefit from the Solo 401(k) plan, investor must meet just two eligibility requirements:

(i) The presence of self employment activity.

(ii) The absence of full-time employees.

Hence, as long as there is a business which has no full-time employees other than the owners/partners and their spouses, the business is eligible to adopt a Solo 401(k) Plan.  Once the eligibility requirements have been satisfied, it is important to work with tax attorneys who can help you establish an IRS compliant Solo 401(k) Plan that can be customized to satisfy your retirement, investment, and tax goals. In addition, it is vital that you confirm that the solo 401(k) Plan your business would be adopting has been a pre-approved by the IRS and that the prototype sponsor will be able to provide you an IRS Letter of Determination for the Plan.

To learn more about IRA Financial Group’s self-directed solo 401(k) Plan, please contact a tax specialist at 800-472-0646.

 

Related Terms:

  • kim k privacy
  • All Rights Reserved Use of our service is protected by our Privacy Policy and Terms of Service state tax
  • All Rights Reserved Use of our service is protected by our Privacy Policy and Terms of Service revtech tech support
  • All Rights Reserved Use of our service is protected by our Privacy Policy and Terms of Service state bank
  • All Rights Reserved Use of our service is protected by our Privacy Policy and Terms of Service home business