If you’re new to investing, then a phrase like “Self Directed Solo 401k” can seem pretty intimidating. Not only is a Solo 401k a new concept to many, but the idea of self-directing is, shall we say, a little daunting.

If you’re new to investing, then a phrase like “Self Directed Solo 401k” can seem pretty intimidating. Not only is a Solo 401k a new concept to many, but the idea of self-directing is, shall we say, a little daunting.

It doesn’t have to be that way. In fact, if you’re a sole proprietor, self-employed, incorporated, unincorporated, etc.—then guess what? A Self Directed Solo 401k might actually be a perfect way for you to invest in your retirement future. Sure, it might sound complicated now, but over the next several hundred words we’re going to explain exactly what these accounts are and how they can benefit anyone who wants the benefit of a 401(k) but doesn’t have a traditional employer to offer a program of their own.

As someone who’s self-employed, you’re used to making things happen on your own. As it turns out, a Self Directed Solo 401k is just another way to build your own financial independence.

The Intriguing Benefits of the Self Directed Solo 401k

First things first: why even consider a Self Directed Solo 401k? Maybe you already have a Roth IRA of your very own and you think you’re doing fine.

As it turns out, there are numerous benefits in securing a Self Directed Solo 401k for yourself:

• High contribution limits. If you’re an avid investor who believes in maxing out his or her investments in retirement accounts, then the Self Directed Solo 401k might be perfect for you, thanks to very high contribution limits. And what’s great is that higher contribution limits may be available once you reach a certain age, allowing you to “catch up.”
• Tax deductions. There’s a reason you’ll want to invest in these types of accounts rather than general investment accounts – you save money with tax deductions. See the IRS’ own Retirement Plan section to learn about tax deductions for “One Participant 401k plans”.

If you were simply to save or invest in a general account, you wouldn’t find the same deductions and benefits as you would with a Self Directed Solo 401k. That’s usually motivation enough for many “investment newbies” to start one for themselves – but wait until you find out how much control you’ll have.

Self-Direction Means More Control

The main benefit to Self Directed retirement accounts aside from those already mentioned is flexibility. With a Self Directed Solo 401k, you’ll have more control over your financial destiny. This is especially attractive to self-employed entrepreneurs who already enjoy controlling their financial destiny—in a way, it fits with their worldview and their general philosophy.

But more control can be a benefit for anyone who qualifies for a Self Directed Solo 401k. More control over your financial future means selecting exactly how much to contribute (thanks to higher contribution limits) and having a say in how the account is handled.

This isn’t limited to Solo 401k accounts. Anyone who’s interested in handling their financial future with more say can learn about Self Directed IRAs and their exciting flexibility. Anyone planning for retirement should consider a Self Directed IRA, even if it’s only to find out more. After all, generating a long-term nest egg isn’t only important, but it might be vital when the time for retirement rolls around. You don’t want to leave any stone unturned in your journey to financial independence.

If you’re interested in learning more about Self Directed Solo 401k accounts or Self Directed IRAs in general, be sure to keep browsing AmericanIRA.com for more information. You can also get more involved in your financial future simply by giving us a call at 828-257-4949 to find out more about Self-Direction and Self Directed Solo 401k accounts.