Small Business A Way To Invest $102,000 Year Into Your Retirement Account Tax Free

Add up to $102,000 each and every Year in a SoloK Directed
With a SoloK Directed fund, you can contribute up to $102,000 every single year.. http://www.ira-401k-realestate.com/IYF-Video-Opt-In/
The Solo 401(k) for investing in real estate but it is
perhaps the best kept secret. http://victor-idaho-trailcreekcrossing.com/
"It A lot of people aren't aware of this, but they should be because it is a powerful tool. There are at least four distinct advantages over
an IRA (Individual Retirement Account)," says Jeff Moormeier
co-founder of IRA Association of America, an alternative
investment educational institution.
Moormeier teaches a program to real estate agents, CPAs,
and investors on investing using the Solo 401(k). Here are the advantages that make this method of investing superior to a standard IRA.
Where could i find more information about Solo
401?k. outline.
Your money can go into a Solo 401.(k) plan faster than IRA
or SEP/IRA. This means that you don't have to accept Unrelated Business Taxable Income when you use mortgage financing for added leverage. You
can defer income into a Tax Free Roth account, inside the
Solo 401(k). Getting money into a Solo 401k. The faster the plan the more beneficial it is to you. Let's use a scenario to show the actual
numbers: You have $100,000 of earned income, and you operate
your business as a corporation with no employees.
"The maximum profit-sharing plan is 25% of earned income,
which amounts to $25,000. Plus the maximum salary deferral
is $15,000 and if you are over the age of 50 you may defer
an extra $5,000. This is called a catch-up provision. In
this example the total new money deposited into the Solo
401(k) is $45,000," explains Moormeier.
"In the more common SEP account, the maximum contribution
on the same income is $25,000. There is no employee deferral
or catch-up provision in a SEP. The difference is $20,000
per year of additional money that may be added to a Solo
401(k) vs. SEP," says Moormeier.
Putting money into an IRA or a 401K plan is a normal activity for a lot of people.k.
plan, but not as many understand that they can actually have
a 401(k) that be able to purchase asset real estate with the cash.
In addition, you are able to borrow on a non-recourse basis
to finance the purchase, thereby creating leverage in your
retirement account. If you have leveraged property in an IRA
there is a tax known as Unrelated Business Taxable Income.
When equivalent transaction occurs with Solo 401.k. this
tax doesn't apply.
"Now, what I am about to tell you, in my opinion, is far
and away the greatest tax benefit the government has ever
given us -- as of January or February of this year the
$15,000 salary deferral and the $5,000 catch-up provision
can now go into a Roth account inside of this 401(k) Mature without taxes. Solo 401 provided tax free, rather than tax deferred, growth.k." explains Moormeier.
He says the current Roth contributions have income limits.
"In other words if you make too much money you are unable
to contribute to a Roth IRA. As of now regardless of your
income, you are able to contribute to a Roth inside a Solo
401(k)," says Moormeier.
The IRA Association of America, online at iraaa.org, is a place where you can get needed assistance in staring a Solo 401k.
plan. Moormeier and co-founder Jeff Nabers have joined
together to help people understand and make use of Solo
401k. investing.
"We've created a company that helps you think. Quite
frankly, there just aren't a lot of tools out there to help
people keep it all straight," says Moormeier.
"We now offer a turnkey 401(k) package. We handle
everything including determining eligibility, establishing
the administration paperwork, opening a bank account, and
handling your rollovers," says Jeff Nabers, founder of
IRAAA.
This 401(k) package will also soon be available directly
through the many local IRAAA branches opening in early 2007.
If you must plan the Solo 401, don't forgetk. Prioritize your deductions by December 31st to claim a deduction. In 2006, if you are over the age of 50 you
can contribute up to $49,000 for each participant, and
jointly you and your spouse can deduct up to $98,000. If you
are under the age of 50 you can contribute up to $44,000 for
each participant, and jointly you and your spouse can deduct
up to $88,000.
Phoebe is a writer,speaker and also a good author. She holds two distinct positions; both as an instructor for professionals in the buying and selling of properties, as wells as a senior manager of Business Development in the department providing certification for expert service. She is a real estate agent with a division of Prudential California Realty, The Guiltinan Group.
Her articles, feature stories, and columns appear in
various publications including The Coast News, Del Mar
Village Voice, and Rancho Santa Fe Review in San Diego.
Phoebe worked for KGTV/10News in San Diego as a Newscaster,
Reporter and Community Affairs Specialist for more than a
decade. She is also the author of If the Trash Stinks, TAKE
IT OUT! 14 Worriless Principles for Your Success available
at Barnes http://victor-idaho-trailcreekcrossing.com/ http://www.ira-401k-realestate.com/IYF-Video-Opt-In/

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