Learn About the Solo 401(k) IRS Rules!
The Solo 401(k) offers the self-employed more benefits than a traditional 401(k). Understand the Solo 401(k) IRS Rules. Make smarter investment decisions and avoid triggering a prohibited transaction. Download IRA Financial’s information kit to see why this is the ultimate retirement plan for you. Learn about:
- Solo 401(k) Eligibility
- Checkbook Control
- Investment Opportunities
- Prohibited Transactions
Why Choose IRA Financial
Experience You Need
IRA Financial Group has over a decade of experience helping clients in all 50 states self-direct their retirement accounts.
A Team You Can Trust
Our tax and ERISA professionals have helped over 12,000 clients invest $3 billion in alternative assets. Our specialists’ assistance is unparalleled.
IFG founder Adam Bergman is a leading voice on self-directed retirement and has authored 7 books on self-directing.
Tell Us What You Need
You’ll be assigned to a 401(k) specialist who will establish your Solo 401(k) that is fully IRS compliant. Through each step of the process, we work with you to create a solution that fits your retirement goals.
Benefits Of A Solo 401K
A Solo 401(k) has fewer filing requirements than a SEP IRA, making it the more cost-effective plan. With minimal filing requirements, it’s also easier to administer.
The Solo 401(k) IRS rules state that you cannot invest in a transaction that’s deemed prohibited. These are known as prohibited transactions, which can be found under IRC section 4975.
The $50,000 Loan
The Solo 401(k) IRS rules state that you can take a loan at any time, borrowing up to $50,000 of your account value. You can use the loan for anything, like adding more funds into your plan.
Solo 401(k) Eligibility
Pursuant to IRS rules, you’re eligible for a Solo 401(k) plan if you’re a small business owner with no full-time employees and you have a legitimate business that generates a profit.
You can make almost any type of investment on your own without the need of a custodian. With “checkbook control,” you serve as trustee of your Solo 401(k) and never need custodian consent
Opportunities To Invest
You can make traditional and alternative investments with your Solo 401(k) Plan. Alternative investments include practically any type of investment, except what the IRS considers prohibited.
“What about your IRA, including rollover IRA? You need to look at state law, advises tax attorney Adam Bergman of New York’s IRA Financial Group. ‘If you have a judgment against you and you don’t file for bankruptcy, most states will still protect your IRA from the judgment,’ says Mr. Bergman.”
“Jeff Brown…transferred roughly $50,000 from his workplace 401(k) account to purchase homes to fix up and sell, partnering with a few other investors. He uses a self-directed IRA that he set up through IRA Financial Group in Miami Beach, Fla.”
“Adam Bergman…gets several calls a day from clients like McDermott looking to invest their retirement funds in real estate. ‘Our average client has retirement accounts of about $150,000 and is looking to buy one or two properties,” he said. “After 2008, they didn’t trust Wall Street. They wanted hard assets.'”