Self-Directed, Solo Roth Solo 401(K) Accounts
This is Part 5 of a 9 part series focused on educating others on retirement accounts, alternate means of investing with these accounts, and ultimately how we can provide multiple forms of investment opportunities with these accounts within our business in which you can attain high rates of returns at substantially low risk.
Self-directed, Solo and Roth solo 401(K) accounts
Are you a small business owner or someone who switched to self-employment after working for a company that provided you with a traditional 401(k) account? Are you employed in a company, but have some part-time income from self-employment also? Are you retired with a 401(k), but now want more freedom in the choices of investments? If so, you may be looking for a suitable retirement plan.
The rollover to Solo 401(k) or Roth Solo 401(k) may be the right choice for you. A wide range of investment choices and flexibility makes self-directed 401(k) accounts a popular option for small business owners and self-employed individuals. Better control over where you want to invest your money, higher contribution limits and low set-up costs are just some of the advantages of having a Solo or Roth Solo 401(K) account.
If you are an employee at a company which offers the option of self-directed 401(k) along with the traditional 401(k), you are probably lucky. It is because self-directed 401(K) also gives freedom in terms of investment choices; however, there may be limits set on non-traditional investments such as real estate and tax lien certificates.
The biggest advantage of Self-directed, Solo and Roth Solo 401(K) accounts is that you can invest in traditional sectors like mutual funds and stocks as well as non-traditional ones like real estate, rental property, precious metals, and overseas assets.
What is self-directed, Solo, Roth Solo 401(K)?
A Self-directed 401(K) is basically an extended, do-it-yourself version of the traditional 401(K). The company where you work can choose whether to give you this option. The choice of investments and payment terms (including method and period) is also determined by the employer. Per a recent survey, 29% of workplaces offered self-directed 401(K)’s in 2011, up from 26% in 2009 and 18% in 2007.
Those who are self-employed or own a business with no employees can open a Solo 401(K) and/or Roth Solo 401(K) account to save and grow money for retirement. The spouse of the account holder can also contribute to the solo 401(K). However, you are not able to open these accounts within a business with employees.
Be sure to keep following this series as we help bring all this information together to show you how working with us and knowing how to take advantage of these tools can optimize the growth of wealth for your future.