Self Employed 401k – Fundamentals of a Lucrative Retirement Account

The self employed 401k could be established and set up with the most trusted administrator, Sense Financial. This is one of the most recommended and lucrative retirement accounts for all who want to prepare for their future using a retirement plan that could multiply their money big time through qualified investment options. Before setting up the account, you need to know more and understand this retirement policy and see if it is perfect for you.


Are you eligible for a self employed 401k?


Also known as the self-directed retirement plan, the Solo 401k has two main eligibility requirements to make you qualified to set up a retirement account. Here are the requirements you need to comply with:


  • Self-Employment Proof – You need to basically prove that you have self-employment activities where you would generate the income to fund your retirement plan. In this case, any qualified candidates could be fully hired as a fulltime employee of a particular company as long as he could prove he has other self-employment activities on the side. You can be an independent contractor or consultant to be classified as self-employed.
  • Small Business Owner – The self employed 401k also requires you to own a small-scale business where no fulltime employees are hired except the owner and his spouse.


Is the Self-Directed Solo 401k a Tax Free Retirement Plan?


In a way, the self employed 401k gives you tax-free benefits through the Roth Solo 401 k sub-account. In this type of retirement plan, plan owners could actually make an after-tax contribution in order to access and enjoy the benefits of investment and income without any tax restrictions. For instance, you will have no tax obligations for the income generated from your investment funded by the Individual 401k plan. The Roth Solo 401k sub-account is one of the types of 401 k plans which promise a lucrative return on investment.


Highest Maximum Annual Contribution


Plan owners could contribute a total of $57,500 annual maximum contribution which is inclusive of the catch up and profit sharing contribution. It is one of the highest contributions in today’s retirement plan industry with almost 10 times difference compared to a conventional Roth IRA or traditional retirement account. This allows plan owners to save more for their future.


With the best investment options and benefits you can get from the self employed 401k, setting up this account is a no-brainer. Know more about the Solo 401k and start investing.


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