“You can be young without money, but you can’t be old without it.” ~ Tennessee Williams

Saving money might not be an attractive idea but it’s definitely a smart one. Your regular annual contributions, even in small amounts, allow you to accumulate substantial retirement savings in the longer run. With that being said, the IRS announced cost-of-living adjustments affecting the dollar contribution limits for different retirement plans for 2017. Our team has put together a short Infographic presenting the Solo 401k contribution limits for 2017.

Who can open a Solo 401k?

In order to open a Solo 401k retirement account, you must be involved in some sort of profitable self-employment activity. It doesn’t matter whether you practice part-time self-employment or have an owner-only business.

Solo 401k contribution limits for 2017

  • Elective deferral limit: $18,000
  • Catch-up contributions: $6,000
  • Define contribution limits: $54,000

What are the benefits of opening a Solo 401k retirement plan?

  1. Alternate investments: If you choose a self-directed Solo 401k plan, you can invest in alternate investments starting with real estate, precious metals, mortgage notes, tax liens, tax deeds, and even private equity.
  2. Participant loan: Depending upon your plan document and Solo 401k provider, you can borrow up to $50,000 or 50% of your retirement fund, whichever is lower, for any financial need. A participant loan is available at a lower interest rate too, prime rate plus 1%. You can use this money for any purpose whatsoever.
  3. Easier maintenance: You don’t need to file any returns for retirement funds valuing less than $250,000, making it easier to manage the plan.
  4. Investment freedom: With a self-directed Solo 401k retirement plan, you can make your investment decisions yourself. You don’t need to seek custodial consent or file a single processing request, allowing you to invest in time-sensitive investments.

$4K/mo of Passive Income With Self-Directed Real Estate IRA

Written by: Dmitriy Fomichenko