2017 Solo 401(k) plan maximum contribution amount to increase to $54,000 and $60,000 for individuals over the age of fifty, an increase of $1000 from 2016
IRA Financial Group, the leading provider of self-directed IRA and Solo 401(k) plans, expects to see an increase in demand for the self-directed solo 401(k) plan in 2017 because of higher annual maximum contribution limits. Under the 2017 Solo 401(k) contribution rules, a plan participant under the age of 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, the business can make a 25% (20% in the case of a sole proprietorship or single member LLC) annual profit sharing contribution up to a combined maximum, including the employee deferral, of $54,000, an increase of $1,000 from 2016.
The annual Solo 401k contribution consists of two parts, an employee salary deferral contribution and an employer profit sharing contribution. In 2017 the total contribution limit for a Solo 401k will be $54,000 or $60,000 if age 50 or older. The total allowable contribution limits are combined to get the maximum Solo 401K contribution limit.
For plan participants over the age of 50, an individual can make a maximum annual employee deferral contribution in the amount of $24,000. That amount can be made in pre-tax, after tax, or Roth. On the profit sharing side, the business can make a 25% (20% in the case of a sole proprietorship or single member LLC) annual profit sharing contribution up to a combined maximum, including the employee deferral, of $60,000, an increase of $1,000 from 2016.
According to Adam Bergman, a partner with the IRA Financial Group, “the solo 401(k) plan offers the self-employed and small business owner with the greatest maximum retirement benefits compared to the SEP IRA and SIMPLE IRA, as well as the ability to borrow up to $50,000 tax-free and purchase alternative asset investments, such as real estate.”
IRA Financial Group’s self-directed IRA LLC and individual 401(k) plan offer retirement investors the ability to make traditional as well as alternative asset investments, such as real estate, from a local bank account without any transaction fees. “With IRA Financial Group self-directed retirement plans, making an investment is as easy as writing a check”, added Mr. Bergman.
IRA Financial Group is the market’s leading provider of self-directed retirement plans. IRA Financial Group has 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 without custodian consent.