A Self-Directed Solo 401(k) offers incredible flexibility and control for business owners, freelancers, and independent contractors seeking to maximize their retirement savings. Unlike traditional retirement accounts, a Self-Directed Solo 401(k) allows individuals to invest in a wide range of assets, including real estate, private equity, tax liens, precious metals, and more. This type of plan is designed for those who are self-employed or run their own businesses with no full-time employees other than their spouse.
One of the key advantages of a Self-Directed Solo 401(k) is the ability to make both employee and employer contributions, potentially allowing for higher contribution limits compared to other retirement plans. For 2025, participants can contribute up to $66,000, or $73,500 if over the age of 50. This includes both salary deferral contributions and profit-sharing contributions, providing significant tax-deferred growth opportunities.
Additionally, a Self-Directed Solo 401(k) offers unmatched control over investment decisions. Business owners can manage their retirement portfolio according to their investment strategies, choosing from traditional and alternative assets without needing an intermediary. This can lead to potentially higher returns, greater diversification, and the ability to invest in markets that align with personal expertise.
This plan also includes the option of a loan feature, where participants can borrow up to $50,000 or 50% of the plan’s value (whichever is less) for personal use, at favorable interest rates and flexible repayment terms.
Setting up a Self-Directed Solo 401(k) is straightforward, and the plan can be customized to suit individual needs. With a strong focus on retirement security, this plan is ideal for those looking to take an active role in their financial future, without relying on traditional investment avenues.
Whether you are a business owner or self-employed, a Self-Directed Solo 401(k) offers the flexibility and potential to build wealth through strategic investments. Contact us today to learn how to set up your plan and start securing your financial future with a Self-Directed Solo 401(k).