Self Employed? Love Real Estate? Solo 401(k) Cash Flow

Solo 401(k)s, are getting more press this year because of tax changes. In a nut shell, You can contribute up to $14,000 a year. This is in addition to taking up to 25% of you compensation income! The plans are for those sole proprietorships or S corporations. Some custodians will let you hold Real Estate in these plans. I have mentioned some of these custodians before but let me add another to the list. One is a company called Pensco, www.pensco.com and the other is Equity Trust Company, www.trustec.com , which I have mentioned before. A great article to get you more information is in Smartmoney, here is the link: http://www.smartmoney.com/taxmatters/index.cfm?Story=20021031&hpadref=1 Have a great day! Steve

2 Responses to “Self Employed? Love Real Estate? Solo 401(k) Cash Flow”

  1. Caitlin says:

    Steve, I’m glad to see someone talking about this topic. A lot of folks out there either haven’t heard of it or have, but remain unfamiliar (our financial planner…most of the reps at Fidelity etc)

    I’ve helped my partner set hers up this year and the paperwork is a bit of a pain (most difficult to transfer a rollover IRA into the account) but the benefits are worth it.

    We are also drawn to this because of the real estate opportunities. We’re not ready now, so we went with Fidelity to start, but in the future we’ll most likely be shopping for a custodian that allows real estate. So thanks for the links too 🙂

    Nice blog…lots to think about!

  2. Steve Mertz says:

    Thanks Caitlin-You may wish to consider doing this in a Roth also, that way, the taxman never cometh!

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