A 401k is an employer plan that is basically a legal tax shelter. It is created and governed by section 401(k) of the Internal Revenue Code. Contributions are made, often tax deductible, into the 401k account by the employee, and the employer will sometimes make contributions into their employees’ accounts as well. Investment returns and asset growth happen without taxation directly on income or gains. This allows the account to grow much more rapidly, usually in exchange for taxation as you later distribute funds to yourself for personal use.

A Solo 401k is one designed specifically for self employed individuals who have no full time employees other than themselves and/or their spouse.

Our Solo 401k offers the most flexibility permitted by law. It allows you to directly control your investments in an unrestricted platform. As the systemic flaws of the stock market become more undeniable as each day passes, investors are flocking to “alternative assets” for better wealth preservation and growth. A partial list of allowable investments includes precious metals, real estate, private companies, and foreign assets.

These are sometimes referred to as “self directed” retirement accounts, and historically this industry has been focused on the self directed IRA, sometimes referred to as the “real estate IRA”. The self directed IRA has been in use by some investors since 1975, while the Solo 401k as we know it has only been in existence since 2006.

Key Benefits of the Solo 401k:

• Manage your account directly without any brokers, banks, or trust companies being the middle man.
• Contribute up to $102,000 per year to your Solo 401k plan
• Legally avoid the UDFI tax that would apply to certain self directed IRA transactions
• Participate in ROTH contributions to your 401k even if you are ineligible for a Roth IRA due to high income
• Transfer existing retirement funds into your new Solo 401k
• Direct your investments with absolutely no restrictions on investment choices (consider real estate, private companies, foreign assets, precious metals, etc)

Our Solo 401k is essentially a Self Directed IRA with more flexibility, better tax treatment, and far lower maintenance costs.