Powerful Real Estate Investing with Solo 401 k Self Employment Retirement Plan

The usual notion of people that retirement funds are exclusively for mutual funds or stock investment has already been debunked with the introduction of a self employment retirement plan from Sense Financial. The Solo 401 k plan allows investors to intelligently invest and use their retirement savings in industries that guarantee bigger return of investment. The real estate industry is one of the most promising and lucrative horizons for investment ventures. According to the 1974 ERISA or Employee Retirement Income Security Act, funding your real estate investment with a Solo 401k account is entirely permissible and recommendable.

Upsides of Using Solo 401k Self Employment Retirement Plan

There are important points to highlight when looking for benefits of the Solo 401 k retirement account.

• It offers the highest 401k limits of contribution in an annual basis.  For the year 2013, the maximum contribution for the self employment retirement plan is $51,000 for account holders below 50 years of age. For plan owners 50 years old and above, a catch up contribution is permitted, allowing them to add $5,500 for their annual contribution making their yearly total $56,500.
• The 401k withdrawal rules allow retirees to use and borrow their funds to invest in real estate with a Checkbook Control feature. This means that you could use your retirement savings without going through piles of paperwork before you could get your money.
• Borrowing money from your Solo 401 k retirement account does not require you to secure custodian consent.
• Real estate investment with the individual 401 k account means that you could invest tax-free or with tax-deferred benefits. It means you can get into real estate transactions and see your funds grow without worrying about tax payments for every investment made.

Types of Real Estate Investment with Self Employment Retirement Plan

• Commercial property
• Single family rental property
• Mobile homes
• Mortgage notes
• Real estate purchase or buying options
• Apartments
• Condos and townhouses
• Tax liens and tax deeds

Using your Individual 401k account to fund 100% of your real estate investment means gaining a lot of upsides and benefits for the transaction. It allows you to entirely purchase the real estate property and fund transactions such as insurance, fees, taxes, closing costs and many others. Borrowed funds from a self employment retirement plan could also be utilized in different ways such as paying a credit card loan among others.