Self-Directed 401k – Maximizing your Retirement Savings Today

[Dmitriy Fomichenko]

With the self-directed 401k retirement account, you can enjoy remarkable benefits when you established this plan in preparation for your future. There are innumerable retirement policies out there but only the Solo 401 k could give you multiple gains and revenue from your investments. Fund your investment options using your retirement funds and watch your money grow before your very eyes. To start with your lucrative retirement plan, it is best to know the basics how this account actually works.

 

Maximum Contribution to 401k

 

One of the most important things to learn and understand about the self-directed 401k plan is the maximum annual contribution you need to comply with. According to updated contribution rules, the annual overall contribution for the Individual 401 k retirement plan is $57,500 inclusive of the catch-up and profit sharing contribution. For an itemized account, plan owners who are below 50 years old are allowed to contribute up to $17,500 as employee salary deferral. If you are 50 years old and older, you can add a catch-up contribution of $5,500 making your total maximum contribution of $23,000. Profit sharing contribution of 25% for plan participants gives you the overall maximum figure of $57,500 contribution per year.

 

Self-Directed 401k Choice of Investment

 

Using your self-directed 401k retirement plan is easy with the Checkbook Control feature. This means you can easily invest your money on your desired options without the approval or consent of a custodian. You can access and utilize your retirement funds as easy as writing a check. Here are some of the known investment options you can choose from:

 

• Real Estate
• Private Businesses
• Tax Deeds and Tax Liens
• Mortgage Notes
• Precious Metals
• Foreign Currencies
• Stocks and Bonds
• And so much more

 

What is a Roth 401 k Plan?

 

For tax-free retirement savings, this type of 401k sub-account is the best solution. You can make an after-tax contribution to fund your retirement account and gain tax-free growth and investment as well as withdrawals. As a 401k retirement plan, it allows maximum yearly contribution, low-cost and simple administration as you don’t need a custodian to use your retirement funds for investment and the Checkbook Control feature allowing you easy access to your retirement savings.

 

With the self-directed 401k retirement account, you can now enjoy tax-free income from your investment funded by your retirement funds. As long as you’re a small business owner and could prove self-employment activity, you are to establish an Individual 401 k plan.