Retirement Plan for Real Estate Agents

There’s never been a more important time to protect and grow your retirement funds. If you are self-employed real estate agent and your plans include investing in real estate, mortgage notes, tax deeds or liens, a Solo 401k plan could be the answer.

The difference between a Solo 401k and a self-directed IRA is that the Solo K plan allows you invest your retirement funds into virtually limitless investment opportunities at your own discretion – with no need for a custodian’s consent.  Solo 401k is a Trust established for your self-employed business (sole proprietor, corporation, LLC, partnership) where client acts as a trustee of the plan.  This gives the client freedom to make all investment decision.

Imagine the advantages:

• You gain the well-known benefits of a 401(k) including tax-deferred profits

• Limitless investment options
• High Solo 401k contribution limits (up to $55,500)
• Asset protection and estate planning
• Your investments are no longer tied exclusively to the stock market. If you want to invest in real estate instead, you can!
• Solo 401k rules allow you to take a loan from your account (up to $50,000 or 50% of your account balance whichever is less)
• You can also leverage your Solo 401k into sales opportunities by bringing in self-employed prospects also interested in property investment
• A solo 401(k) plan allows you to borrow up to 50 percent (or $50,000) of its account value for any need
• Solo 401k rollover options lets you transfer/rollover from any other retirement account except Roth IRA

Be aware that Internal Revenue Code Section 4975 outlines certain "prohibited transaction" investments. But apart from those prohibitions, you are free to use a solo 401(k) to fund most commonly made investments, from public and private stocks to real estate and commercial paper.

So if you are self employed and wish to maximize your ability to save for the retirement while minimizing your tax liability now, Solo 401k plan is your solution.