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2017 Solo 401k Contribution Limits

2017 Solo 401(k) contribution limits

The 2017 Solo 401k contribution limits will increase, much like the 2018 plan. A plan participant under 50 can make a maximum annual employee deferral contribution in the amount of $18,000. That amount can be made in pre-tax, after-tax or Roth. On the profit sharing side for the 2017 Solo 401k contribution limits, the business can make a 25% annual profit sharing contribution up to a combined maximum of $54,000. This is an increase of $1,000 from 2016. Furthermore, it includes the employee deferral. It’s 20% in the case of a sole proprietorship or single member LLC.

Plan participants who are over 50 can make a maximum annual employee deferral contribution in the amount of $24,000. Participants can make this amount in pre-tax, after tax, or Roth. On the profit sharing side, the business can make a 25% annual profit sharing contribution up to a combined maximum of $60,000. This is an increase of $1,000 from 2016. Again, it includes the employee deferral. In the case of a sole proprietorship or single member LLC, it’s 20%.

A Solo 401k Plan provides you with the opportunity to make higher annual contributions in pre-tax, after-tax or Roth.

IRA Financial Group’s Solo 401k plan is unique and popular because it’s specifically for small, owner-only businesses. In addition to the high annual contribution limitations. There are many features of the IRA Financial Group’s Solo 401k plan that make it appealing for small business owners.

Receive a Tax and Penalty Free Loan

IRA Financial Group’s Solo 401k Plan allows plan participants to borrow up to $50,000 or 50% of their account value (whichever is less) for any financial reason. This includes paying credit card bills, mortgage payments, or anything else. Participants must repay the loan over a five-year period, or at least quarterly at a minimum prime interest rate. However, you have the option to select a higher interest rate.

Checkbook Control Plus No Transaction Fees

You will realize that the most attractive feature of the IRA Financial Group Solo 401k Plan is that it offers the participant checkbook control over his or her retirement funds. Just like a conventional Solo 401k Plan by most financial institutions, the plan participant makes traditional investments (stocks and or mutual funds). The Plan account must be opened at the financial institution.

With IRA Financial Group’s Plan, you can open your plan account at any local bank, including Chase, Wells Fargo, and even Fidelity. Furthermore, with IRA Financial Group’s Solo 401k Plan, you can make almost any traditional and non-traditional investment.

With IRA Financial Group’s Solo 401k Plan, the Plan participant has the freedom to make the investments he or she wants while at the same time opening the 401(k) account at any local bank. As trustee of the Plan, the Plan Participant can serve as the trustee providing you have checkbook control over your retirement funds.

Real Estate Investments & Much More – All Tax-Free

IRA Financial Group offers a Self-Directed Solo 401k plan that enables you to invest in almost any type of investment opportunity. We like to say that your only limit is your contribution

With IRA Financial Group’s Self-Directed Solo 401k plan, you will be able to invest in almost any type of investment opportunity that you discover. Your imagination is your only limit. The income and gains from these investments will flow back into your Plan tax-free.

Roth Contributions & Conversion

IRA Financial Group is much different than your conventional financial institution. How so? In contrast to a conventional Solo 401k Plan by most financial institutions, our plan contains a built in Roth sub-account. It can be contributed without any income restrictions. Additionally, the IRA Financial Group’s Solo 401k Plan allows for the conversion of a traditional 401(k) or 403(b) account to a Roth sub-account. However, the Plan participant must pay income tax on the amount converted.

Easy Administration

IRA Financial Group’s Solo 401k Plan is easy to operate. There are no annual filing requirement unless your Plan assets exceeds $250,000. In this case, you’ll need to file a short information return with the IRS (Form 5500-EZ). However, we’re not as formal as most financial institutions. The tax professionals at the IRA Financial Group will assist you in completing this form, if necessary.

Did you know?

A Solo 401(k) Plan can help you save thousands in taxes by way of deductions.

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