Menu Close

Eliminating the Middle Man with a Solo 401K

Solo 401K plans have been designed for the self-employed business person and their spouse who have no full-time employees. Contributions to the plan are tax deductible like other self-directed IRA accounts, and the funds are considered to be assets that are intended to grow without being taxed directly as income or capital gains until you withdraw the funds from the account.

The Importance of Self Directed IRA and its Various Types

Even people who have stable financial sources now worry about their future and security after retirement. This is where a self directed IRA or solo 401k may be a beneficial option. There are not many differences between the options of self directed IRA and solo 401k, only that the last involves a plan with the employee’s company.
The two are similar when it comes to taxes and withdrawal age, but most people choose self-directed IRA simply because of the flexibility offered with various plan types. In addition to the freedom to choose according to preference, an IRA will offer more security as it is not connected to one’s employment like the solo 401k.

A Self Directed IRA LLC: Control Your Future

Almost everyone knows that the tax benefits that go along with a Roth IRA are appealing. Some people, though, are not happy with the way these funds are managed; a small minority of people likes to be in complete control of their finances. There is also the fact that the requirements placed on a Roth IRA are fairly strict.
This is where a self directed IRA LLC comes into play. With a self directed IRA you can enjoy the tax benefits without having to deal with the other things that go along with it. First, it requires the formation of a limited liability corporation that will act as managers of the account. The person who puts money into the account is then assigned as manager. This is a work-around of the law and is perfectly legal. This will allow you to invest for your retirement tax-free, without the hassles attached to a traditional IRA.