IRA Financial Expects Surge in Solo 401(k) Plans in 4th Quarter

NEW YORK (PRWEB) December 12, 2019

IRA Financial (IRA Financial Group & IRA Financial Trust Company), the leading Solo 401(k) Plan provider, expects to see a strong demand from the self-employed and small business owners in the fourth quarter of 2019 looking to adopt a self-directed solo 401(k) Plan for the 2019 taxable year.

A Solo 401(k) Plan, also known as an Individual 401(k), offers plan participants the ability to make annual contributions of up to $56,000 if under 50, and $62,000 for individuals age 50 and older. Additionally, the plan offers a Solo 401(k) loan feature of up to $50,000 tax and penalty-free. Solo 401(k) plans with "checkbook control" allow participants to make virtually any type of investment without requiring the consent of a custodian.

"IRA Financial Group's Solo 401(k) plan is so unique and popular because it's a flexible retirement plan with no burdensome annual administrative requirements," said Adam Bergman, tax attorney and President of IRA Financial.

In fact, plan participants have no annual filing requirements unless the fair market value of the Solo 401(k) plan assets exceed $250,000.

Individuals who are eligible to establish a Solo 401(k) plan will receive a number of exciting tax, retirement and investment advantages, including the ability to defer up to $62,000 annually and gain greater control over their retirement plan investment options. To become eligible, one must have a business with no full-time employees, except themselves, a spouse and/or business partner(s), or generate some form of self-employment income, such as freelance work. This can be in conjunction with a traditional 9-to-5 job.

With the plan's robust features and the rise of the gig economy (a faction of workers who freelance or have short-term contracts), Bergman is confident that more Americans will see the appeal of saving for retirement with a Solo 401(k) Plan.

An added attraction to the plan is that contribution limits are expected to increase, as the Treasury Department recently announced the new contribution limits for 2020.

Solo 401(k) plan participants under age 50 will be able to contribute $57,000 in 2020, while participants age 50 and over have a $6,500 catch-up which will increase their contribution to $63,500.

The figures, which were adjusted to take inflation into account, will allow participants to save significantly more in 2020 than in 2019.

For more information on IRA Financial and the Solo 401(k) plan, visit their website at https://www.irafinancialgroup.com/ or call 800-472-0646.

Read the full story at https://www.prweb.com/releases/ira_financial_expects_surge_in_solo_401k_plans_in_4th_quarter/prweb16784068.htm