Easy Administration
When it comes to self-administered 401k plans, there’s no third-party custodian. You are the plan’s trustee, so you can enter into transactions or make investments independently. American IRA acts as the record keeper.
A Wealth of Investment Options
You can invest in various investment vehicles, from real estate and limited liability companies to tax liens and precious metals. While there will be specific Solo 401k real estate and other investment rules to follow, this gives you the freedom to widen your portfolio.
UDFI Exemption
Unrelated Debt-Financed Income is a tax generated when an IRA or any tax-exempt entity earns any profit (like a rental income) from a financed property. However, if you make a Solo 401k real estate purchase, you can avoid paying UDFI taxes. Any earnings from the purchased property will grow tax-deferred.
Consolidate Accounts
Creating a Solo 401 k plan allows you to roll over your old accounts with your former employers to your current account. You can also transfer funds from other retirement plans, including Simple IRA, SEP IRA, 403(b), and Traditional IRA.
Easy Administration
When it comes to self-administered 401k plans, there’s no third-party custodian. You are the plan’s trustee, so you can enter into transactions or make investments independently. American IRA acts as the record keeper.
A Wealth of Investment Options
You can invest in various investment vehicles, from real estate and limited liability companies to tax liens and precious metals. While there will be specific Solo 401k real estate and other investment rules to follow, this gives you the freedom to widen your portfolio.
UDFI Exemption
Unrelated Debt-Financed Income is a tax generated when an IRA or any tax-exempt entity earns any profit (like a rental income) from a financed property. However, if you make a Solo 401k real estate purchase, you can avoid paying UDFI taxes. Any earnings from the purchased property will grow tax-deferred.
Consolidate Accounts
Creating a Solo 401 k plan allows you to roll over your old accounts with your former employers to your current account. You can also transfer funds from other retirement plans, including Simple IRA, SEP IRA, 403(b), and Traditional IRA.
Note: Only new Roth contributions are allowed in a Solo 401k; existing Roth funds can’t be transferred or rolled in.
