If you are a sole proprietor or a small business owner with no employees other than your spouse, you are eligible to establish a solo 401(k). With the solo 401(k), you can make two types of contributions, salary deferral and profit sharing, allowing you to benefit from higher contributions compared to other types of retirement plans for the small business owners.
The solo 401(k) is also known as a self-employed or individual 401(k) and has a Roth option allowing you to take advantage of tax exempt income during retirement years. This is accomplished by contributing after-tax dollars to fund the account. The Roth option allows your contributions to grow tax free and provides tax free income during later years. Theses benefits combined with a self-directed feature is powerful for any self-employed individual seeking to take control and better prepare for the future.
While traditional banks or brokerage may offer self-directed account, they rarely offer the wide investment options provided by a “true” self-directed custodian. You can do it with a custodian that allows you to invest in any of the asset classes permitted by the IRS.
Creig Stephens is a retirement strategist specializing in helping the self-employed who fear they lack sufficient capital from their operations to funds their ideal retirement lifestyle. His diverse financial background and education, allows him to extract cash-flows from hidden business value to help grow small business retirement accounts.
He is managing partner for Crowne Equity Partners, LLC a firm specializing in B to C class multifamily apartments with 100+ units located in emerging markets. He provides the strategic vision and analytical skills to underwrite undervalued properties that provide significant returns for CEP’s private partners.
To learn more about “Self Directed IRA” for small business owners, go to www.cepinvestira.com or www.creigstephens.com “An Expert in Diversification” to get tactics to locate hidden business cash flow that can be used to diversify and fund your ideal retirement lifestyle.
