A Personal 401k is another name used to refer to Solo 401k. The primary feature of Personal 401k is that it allows the self employed business owner to make high annual contributions ($55,500 for 2102) to save for retirement tax free if Roth Solo 401k contributions are made.
Personal 401k can also be invested in alternative investments such as real estate, precious metals (Gold, Silver), tax liens and more. However, in order to make alternative investments, the services of a Solo 401k Provider whose plan document allows for checkbook control must be utilized.
A Self-Directed Personal 401k with Checkbook Control allows the personal 401k trustee, who is typically the business owner, to make personal 401k investments by writing a check. The alternative investments (the documents associated with the purchase) are then safe kept by the personal 401k trustee. Again, the key to this feature is to open solo 401k with a provider whose personal 401k documents allow for alternative investments.
No comments:
Post a Comment