If you are self-employed (and have no full-time employees other than yourself and your spouse), the solo 401(k) is possibly the best tax-advantaged retirement investment program the IRS code permits. Among the advantages it offers that surpass self-directed IRAs:
– maximum investment flexibility: checkbook control allows easier diversification into investment options outside the public securities markets (including notes and deeds like we offer at Sterling Pacific Financial)
– Roth feature
– highest possible contribution limits
– other advantages associated with company 401(k) programs, such as 401(k) loans
Even if you work full time for someone else, you still may be able to establish a solo 401(k), provided you have a side business that doesn’t have employees. (In fact, the huge advantages of establishing a solo 401(k) might even make it worthwhile to establish a side business if you don’t have one already.)
To learn more, watch this video in which Jeff Nabers, founder of the IRAAA and CEO of Nabers Group, interviews Eric Wikstrom, founder of Integrated Wealth Strategies and a recognized self-directed retirement investing expert, on the advantages of solo 401(k) accounts.