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Irs.gov solo 401k Rules

Incredibly there are still a number of people that don’t believe that the solo 401(k) plan is an IRS approved plan.  Those same people state that the options available under the Solo 401(k) plan are simply too good to be true and they would have heard of this plan if it was approved by the IRS.  They generally go on to state that their tax professional recommended a SEP IRA and that it was the best plan available for a self-employed individual or small business owner with no full-time employees.

 

Solo 401(k) Plan is IRS Approved
Solo 401(k) Plan is IRS Approved

The Solo 401(k) plan, also called the “one-participant 401(k) plan”, is not a new type of plan. It is a traditional 401(k) plan covering only one employee. The plans have the same rules and requirements as any other 401(k) plan. The surging interest in these plans is a result of the EGTRRA tax law change that became effective in 2002. The law changed how salary deferral contributions are treated when calculating the maximum deduction limits for contributions to a 401(k) plan. This change created an opportunity for some people to put away additional amounts toward their retirement. The marketing for this type of plan is aimed at business owners who do not have any employees, other than themselves and perhaps their spouse. Many of the advantages stressed by marketers of these plans vanish if the employer expands the business and hires more employees. No matter what the plan is called, it must meet the rules of the Internal Revenue Code. If employees are hired and they meet the eligibility requirements of the plan and the Code, they must be included.

For more information on the Solo 401(k) Plan from the IRS, please see the link below:

 

http://www.irs.gov/Retirement-Plans/One-Participant-401%28k%29-Plans

 

With IRA Financial Group’s self-directed solo 401(k) Plan, also known as an individual 401(k) plan is a specially customized retirement plan, which offers strong retirement benefits and diversified investment options.  With IRA Financial Group’s self-directed 401(k) plan, a self-employed individual has the ability to make annual contributions of up to $52,000 ($57,500 for those over the age of 50) for 2014, borrow up to $50,000, as well as use his or her retirement funds to make almost any type of investment on their own, including real estate, tax-deferred (tax-free in the case of a Roth solo 401(k)) without requiring the consent of any custodian.

 

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 provider of IRS approved self-directed solo 401(k) 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.

 

To learn more about the IRA Financial Group please visit our website at www.irafinancialgroup.com or call 800-472-0646.

 

 

 

 

 

 

 

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Posted in Solo 401(k)