Year End 2009 - Solo 401k Plan Retirement Tips
Video
(December 1st, 2009)
In these turbulent economic times, millions of
Americans have watched their money vanish in to thin air! And now
with the end of the year rapidly approaching, they are looking for
a tax break. And a Solo 401k gives them just that! The problem is,
many Americans are unfamiliar with a Solo 401k plan.
Jeff Nabers: A Solo 401k is a special type of
401k designed to be used by self employed people and it has some
unique powerful features that go above and beyond the average retirement
account.
What makes the Solo 401k so unique is the ability
for self employed people to make large retirement contributions
to the plan. Imagine being able to put almost $50,000 a year in
to a retirement account, it's the kind of break many could use this
year and it is possible with the Solo 401k. For 2009, the maximum
Solo 401k contribution limits are nearly 10 times higher than an
IRA. You can contribute up to $49,000 per year or $54,500 per year
if you are over the age of 50. If your spouse is also in the business,
an additional $49,000 or $54,500 (if over 50 years of age) can be
contributed by the spouse; but the benefit goes beyond the tax breaks.
One special feature of the 401k is that it can
be run by the actual account owner. So you don't have to go and
open it up at a Wall Street focused firm, what you can do is run
your own Solo 401k. Also, you're not limited to ordering investments
off of a menu of stocks, bonds & mutual funds. You can seek
alternative investments like:
The Solo 401k even allows account holders to
borrow money from their own retirement funds. Account holders can
take a loan of $50,000 or 50% of the account's value for any reason;
the loan must be repaid up to a loan term of 5 years. Having complete
control over your retirement account makes some people a little
uneasy about whether this is financially risky. It depends on what
the person does with it. But in general, more control & more
investment options are a lot better than less. For the past few
years, we've seen the US stock market move up and down as a single
asset class; so to be forced to put all of your money in a single
asset class is a huge amount of risk. So having complete control
and running your own retirement account means not being forced to
risk everything you have on Wall Street.
If you're looking for a tax break this year,
there's still time to open a Solo 401k. But you have to do research
and seek experts to help you understand the plan. The clock's ticking
and you only have until December 31st, 2009 to open a Solo 401k.
