An Individual 401(k), also known as a Solo 401(k), is a retirement account that gives you maximum flexibility and freedom to invest for your future. The Individual 401(k) is similar to a traditional 401(k), but is designed specifically for businesses that employ only the owner, their spouse, and partners.
An Individual 401(k) plan has two components based on your role as both employer and employee:
With Entrust, you can establish the salary deferral component as either a Roth or Traditional tax-deferred plan, which reduces your taxes now and offers tax-deferred savings. With the Roth, you make after-tax contributions to the account, and future withdrawals are tax free.
You can open and make contributions to an Individual 401(k) if both of the following requirements are met:
A self-directed account is different because it allows you to have more investment freedom. Self-directed retirement plans offer the unique opportunity to hold alternative assets, such as real estate, precious metals, and more.
If you currently have an Individual 401(k) and want to self-direct your funds into nontraditional investments, you can transfer or rollover the funds to Entrust (without penalty) and gain access to a wide range of alternative investments, from real estate and gold to private stock and small business. Contact us to get started today.
How to determine if an Entrust self-directed Individual 401(k) is the right retirement plan for you:
If you answered 'yes' to all or most of these questions, an Individual 401(k) may be a good choice for you.
In addition to the allowances above, Entrust offers you the option to choose from various service options. Explore these options to see how you can best direct your future with ease:
There are two contribution limits associated with Individual 401(k)s because there are two contribution components; employee and employer:
Individual 401(k) accounts also allow for catch-up contributions. If you are over the age of 50, you may contribute an additional $6,000 for the year 2014.
Visit our Learning Center Resources for up-to-date information on contribution and income limits.