The Self-Directed Plan for a Business, Self-Employed Individuals, and more.
Access your retirement funds to make alternative investments without tax penalties, or pay off debt with the solo 401(k) loan feature.
SOLO 401(K) - What Is It?
The Solo 401(k) works much the same as traditional 401(k) plans offered by large companies, as well as SEP IRAs designed for the self-employed. Unlike other retirement plans, an Solo 401(k) is strictly for sole proprietors who have no employees (although your spouse may contribute if he or she earns income from your business). The Solo 401(k) comes in both a traditional and Roth version, just like IRAs. With the traditional Solo 401(k), you put away money on a pre-tax basis and it grows tax-deferred. Your money is taxed when you withdraw it, in a future that may well include higher tax rates. If you opt for the Roth 401(k) version, you put in after-tax dollars and your money grows tax-free, which means it is not taxed upon withdrawal. You can split your contributions between the two types of accounts.
HOW DOES IT WORK?
Step 1: Establish LLC (if necessary)
Step 2: LLC opens a Solo 401(k) with PTG
Step 3: Fund new Solo 401(k) by transferring existing IRA or Prev 401(k)
Step 4: Take personal loan (if necessary)
Step 5: Invest remaining funds