The Solo 401(k) limited liability solution will allow investors to use their retirement funds to buy real estate and more tax-free and with limited liability protection
IRA Financial Group, the leading provider of self-directed Solo 401(k) Plans, announces the introduction of the “Total limited liability protection” Solo 401(k) LLC solution. With IRA Financial Group’s limited liability Solo 401k Plan, the individual plan participant of the Solo 401k Plan, will have “checkbook control” over the retirement funds allowing one to make 401k Plan investments by simply writing a check while gaining the advantage of limited liability protection for its investments. In general, when making an investment with a Solo 401k Plan, one has the option of making the investment directly with the Solo 401k plan, or, alternatively, one can invest the funds in an entity, such as a LLC, which will be owned 100% by the Solo 401k plan to make the investment. “By using an LLC that would be wholly owned by the Solo 401(k) Plan, the plan participant would be able to gain limited liability protection for its real estate and other non-traditional investments,” stated, Adam Bergman, a tax partner with the IRA Financial Group.
According to Mr. Bergman, an LLC offers its members (owners), in the case of a Solo 401k Plan, limited liability. Owners and members of the LLC are not liable for the debts, obligations, and liabilities of the LLC. Since, in most cases, ones retirement account may be their most valuable asset, protecting them from attack from creditors is essential. By using an LLC, one would be able to shield their 401k assets held outside the LLC from creditor attack.
“Along with limited liability protection, the LLC offers its owner(s) privacy, confidentiality, and discretion when making investments using a Solo 401(k) plan. Because most states do not require the name of the member(s) of the LLC to be made publicly available when forming an LLC, by using an LLC, the 401k Plan participant can shield his or her identity when making an investment. Whereas, if the Solo 401k Plan made the investment directly (without using an LLC), the Solo 401k Plan’s name would be included on all the real estate and title related documents and would be publicly available. In other words, the name of the Solo 401(k) Plan, which typically involves the name of the business or sole proprietorship adopting the Plan would be included on all public documents, whereas, in the case of an LLC, only the name of the LLC would be included.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market’s leading “checkbook control Self Directed IRA Facilitator. 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.