Debunking the myths surrounding Solo 401(k)


Numerous alternative investments in the market offer higher rates of return. But your current retirement plan may limit your options regarding investments. Did your investment expert tell you that you couldn’t invest in the overseas real estate market? This is just a myth. Today, we are going to burst many such myths for you.

Keep in mind that with a Solo 401(k), you can invest in the international real estate market and other attractive alternative investment options.

  • Myth 1: Planning And Managing A Solo 401(k) Is Complicated

Well, this is not true. It is easy and simple. It will take less than 30 minutes to set up your Solo 401(k) plan.

When you purchase alternative investments with your Solo 401(k), you ensure that your profits compound over time. In short, you are guaranteeing that your wealth grows manifold.

  • Myth 2: You Are Not Allowed To Withdraw Funds Before Retirement

This is, again, a rumor and nothing else. You can withdraw your fund from the Solo 401(k) plan in multiple ways. You can easily take a personal loan for up to $50,000. There are no fines or penalties for these loans. However, make sure that you stick to these rules:

  1. You have to repay the loan within five years or less
  2. Your regular payment should not exceed the quarterly mark
  3. You need to pay back the amount at a reasonable rate of prime rate +1% of the loan amount
  • Myth 3: You Are Not Allowed To Rollover Funds To A Solo 401(k) Plan

This rumor has been quite famous for years. But, sadly, this is again false. You can easily roll over funds from any other retirement plan to your Solo 401(k). Whether it is a conduit IRA, 457b, Traditional IRA, TSP, SEP IRA, or pension – it can be rolled over to your Solo 401(k) as long as you did not make any after-tax contributions to the IRAs.

  • Myth 4: You Are Not Allowed To Contribute To Solo 401(k) and IRA In A Single Year

This is just a rumor and nothing else. You can contribute to these retirement plans in a single year without any issues. Most people contribute to both of these accounts every year. However, one thing to keep in mind here is that the tax advantages you get might get limited based on your account.

  • Myth 5: Managing A Solo 401(k) Is Expensive

This is such a big misconception. Multiple service providers are offering cost-effective solutions. Get in touch with any of them and get the needful done. With the right investment expert setting up your Solo 401(k) account and managing it is never expensive. Make the most of it.

To Sum It Up:

Now that we have debunked the most common myths regarding Solo 401(k) in the market go ahead and invest in it immediately. You will get all the required details and information on solo401k.comJust click on the link, and you will have all the information at the click of a button.

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