401k Limits 2011 ? IRA Financial Group Blog

August 16th, 2011

Deciding what to do with the money being saved during a lifetime for after retirement can be a very hard decision. Trusting it to someone else to invest is proving to be more and more risky in today?s world, but it is also hard to know what to invest money in without the help of someone with knowledge in the area. However, creating an Individual Retirement Account, or an IRA, is not nearly as hard as it seems. This type of solo 401K plan offers tax advantages for citizens and has the option of being a self-directed IRA. This means that the holder of the account would be in charge of making all of the decisions pertaining to the account. Learning how to do this is easy with the Self Directed IRA LLC Solution.

Through a solo 401K, it is possible to make investments tax-free. For people who are self-employed, solo 401K plans are becoming increasingly popular because of the amount of benefits attributed with them. They offer the ability to take out tax-free loans with high limits and have adjustable contributions. The 401K contribution limit for 2011 for solo 401Ks is $49,000. However, there are other 401k limits 2011 plans that can be adjusted based on an individual?s cost of living.

There are several different solo 401K rules that need to be followed, however, in order for the self-direct IRA to be used correctly. The portion of the solo 401K that is for profit sharing cannot be made as a Roth contribution. They are tax-deductible and are made pre-tax, and while Roth contributions can be made, they cannot come from the profit-sharing portion. A person is allowed to have 401K loans. They can total a maximum of $50,000 but are not allowed to exceed half of the 401K?s total value.

Investing money into real estate through a solo 401K is a wise choice because the value of it is most likely going to continue increasing. Making decisions such as this can allow a person?s mind to rest easy knowing that their money is not at any kind of a great risk. Learning how to invest money through a self-directed IRA is the best plan for retirement.

Source: http://www.irafinancialgroup.com/wp/401k-limits-2011/

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