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Can I have a 401k and an IRA?

What is a 401k plan?

A 401k plan is something that your employer sponsors for you as an employee in order to have for retirement. You can save money in your retirement plan without having to pay any taxes on the money until you draw out the funds after retirement. The majority of people receive a lowered tax rate at retirement then if they draw out the money earlier so the savings are worth the wait.

What is a Solo 401k?

A Solo 401k is another retirement account that allows you to invest in almost anything tax-free. It has a higher limit on how much you can contribute and offers you the freedom of tax deferment so you are paying nothing out of pocket for expenses on your savings. It is an IRS-approved savings account, and there are no custodian fees involved — so you get more of your money. This plan enables you to borrow up to $50,000 for any reason without having to worry about any penalties.

What is a Self-Directed IRA LLC?

A Self-Directed IRA LLC offers you a quick and easy setup with very little maintenance. It also is IRS approved and gives you the ability to invest in virtually anything without having to pay any taxes on it. It offers a limited liability protection so you don’t have to worry about what is going to happen with your money. Under the Self-Directed IRA LLC plan, you also are given asset and creditor protection so you have some peace of mind with what happens with your funds.

What is Self-Directed IRA Real Estate?

The Self-Directed IRA Real Estate works pretty much the same way as the Self-Directed IRA. It allows you to invest your IRA funds into the real estate market tax-free without having to worry about any penalties. Since you are the one in control, you have the freedom to choose how you want your real estate investments handled. The biggest advantage of purchasing real estate with your IRA is that all of your gains are considered tax-free until a distribution is taken.

Which one do I choose?

Regardless of which one you choose, the choice is yours and you need to make sure that you are choosing the best option for your specific situation and needs. Do your research and decide what option will work best and then begin speaking with a financial planner to make it happen.

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Posted in Self-Directed IRA, Solo 401(k)

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